Global Trends in Real Estate Finance
October 2009, Wiley-Blackwell
Recent years have seen some rapid developments in the global scale and structure of real estate markets. Such transformations have been paralleled by significant changes in the financial structures, and processes that serve these markets, including sophisticated new investment and finance structures and products. Examples of these include the real estate investment trusts (REIT) products that have been developed in USA, Europe and Asia, the range of unlisted products emerging in UK and Europe, and the innovative financing structures being developed in many countries.
Global Trends in Real Estate Finance addresses this emerging complexity and sophistication in contemporary real estate markets by discussing the history, merits and implications of a range of products and processes. Also examined are the changes in the practices and environment needed to ensure the success of these property products, including increased disclosure, corporate governance, market transparency and improved skills base.
Chapters are written by leading international contributors, both academic and practitioner. The context is explicitly international, with a focus on UK, Europe, Asia, Australia and the USA. The aim is to identify specific market areas to describe the key innovations, rather than simply providing a description of various geographical markets.
Part I: Products
1. Global REITs universe continues to expand and develop (Lijian Chen and Thomas I. Mills).
Global core real estate universe: $8 trillion and growing
Why have REITs succeeded?
REIT proliferation: thriving in 18 countries and counting
Early growth cycle: only the tip of the iceberg
Relative risk and return
2. The US real estate investment trust (REIT) market (Will McIntosh).
The evolution of US REITs
US REITs: creation to 1993
US REITs: the Modern Era
The investment performance of REITs
The future of REITs
3. Progress on REIT regimes in Europe (Simon Clark and Tom Road, Linklaters, Olivier Mesmin, Baker McKenzie, Matthias Roche).
Developments in France: SIIC 2/3/4 and the OPCI
OPCI: ‘the non-listed SIIC’
The German REIT
The UK REIT
EU law and REITs: what are the issues?
4. Listed Property Trusts in Australia (Graeme Newell).
Background to LPTs
LPT regulatory framework
LPT performance analysis
Recent issues in the strategic development of LPTs
Changing LPT and property landscape in 2007–2008
5. Asian REITs: playing the yield game (Joseph T.L. Ooi and Neo Poh Har).
REIT markets in Asia
Ways to enhance distribution yield
6. European real estate unlisted vehicles: a mature market now or is there more to come? (Karen Sieracki).
Characteristics of European real estate unlisted vehicles
Performance of European real estate unlisted vehicles
Discussion and conclusion
7. Constructing a Global Real Estate Investment Index (Ian Cullen).
Top down or bottom up?
Rolling out national market indices
The first IPD multi-market index – the pan-European
…and finally the world – IPD’s first global index
8. Property derivatives (Gary McNamara).
The history and innovation behind the property derivatives market
The drivers for change
Pricing and underlying index activity
Alternative indices and products being traded
Has the market achieved the results expected of it?
How have derivatives changed the market place?
Future expectations, unintended consequences and lessons learned
9. Property markets in central and eastern Europe (Stanley McGreal, Jim Berry and Alastair Adair).
Development of real estate markets
Property markets, data availability and economic competitiveness
Bank lending on property in central and eastern Europe
10. Islamic finance and Shariah compliant real estate investment (Ali Parsa, University of Ulster, and Ali Muwlazadeh).
Shariah funds in the research agenda
PART II: Processes
11. Socially responsible property investment – background, trends and consequences (Thomas Lutzkendorf and David Lorenz).
Social responsibility and sustainable development – background
The principles for responsible investment
Trends and concepts within the property market
The benefits of sustainable buildings and of SRIs
Criteria and assessment tools
Realisation of SRPIs
Implications for property professionals
Conclusion and recommendations
12. Corporate governance in the real estate industry (Prof. Dr. Karl-Werner Schulte, Prof. Dr. Wolfgang Schäfers and Nicolas Kohl).
Reasons for the rising importance of corporate governance
Existing corporate governance principles for the real estate industry
Impact of corporate governance on firm value
Research agenda for corporate governance in the real estate industry
13.The future of real estate education (Tony Key).
The demand for real estate skills
Paradigms for real estate education
A real estate body of knowledge
The methods of real estate education
The future of real estate education
Karen Sieracki, director of KASPAR Associates Ltd - property research