11 April 2018, Dublin – INREV is to introduce a new Internal Rate of return (IRR) Index that will enable investors in European non-listed real estate to better compare their real estate investments with those they have in other asset classes.
It is a significant development that will help to align the real estate investment industry more closely with other asset classes, such as private equity. The index will measure performance based on cash-on-cash returns as opposed to the value-to-value approach in the Modified Dietz method, which is the current default measurement for most real estate indices. It will be particularly relevant for closed-end funds.
Following recent approval from the INREV Management Board, an initial consultation version of the index will be launched in May 2018. All future editions of the index will be released quarterly, approximately three weeks after the INREV Quarterly Index.
The new index benefits from earlier work to capture data from every single vehicle in the INREV Database. This means the IRR Index could include performance data from a robust sample of 191 funds across vintages from pre-2002 to 2017.
Henri Vuong, INREV’s Director of Research and Market Information, commented: ‘The launch of this index marks another important step forward on the journey to total transparency for the non-listed real estate industry. It will complement other similar indices that already exist in the US and Asia, which could all potentially be combined to create a global index in the future.’
The IRR Index is the latest addition to INREV’s existing series of regular indices, which includes the INREV Annual Index, the INREV Quarterly Index, the German Vehicles Index, the Global Investor Index and the Global Real Estate Funds Index.
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For further information, please contact:
Johlyn da Prato, johlyn.da.prato@inrev.org, +31(0) 20 2358603
Justin St Clair-Charles, inrevteam@firstlightpr.com | +44 (0) 7769 644 059
Jack Rodgers, inrevteam@firstlightpr.com | +44 (0) 7580 427 746
Notes to Editors
About INREV
INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.
INREV has 416 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.
The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.