The real estate funds industry is facing new challenges and managers’ business models are having to transform to meet them. A changing regulatory backdrop as well as evolving investor priorities has meant fund managers need to be informed and proactive in their approach to both product development and ongoing fund management. Capital is being sought from new sources, and from different parts of the globe, bringing with it different investment structures, reporting requirements and relationship approaches, and fee structures are being reviewed and refined.
There is a growing focus on the cost and efficiency of fund administration amid signs of some consolidation in the market, as managers seek to capitalise on economies of scale in light of greater uncertainty in investment markets. At the same time as this secular change, the real estate fund manager will also be looking to take advantage of cyclical market opportunities that higher yields and distress are now presenting in some sectors.
The Deloitte real estate funds team is assembled from our full range of disciplines to best support our clients' needs and deliver fully integrated solutions. We advise managers and investors regarding tax-efficient fund structures for investment in UK, Pan-European and global property (including regional and sector specialist funds), covering every stage of the fund investment cycle.
With our wide experience across all segments of the industry, we also help fund managers promote fiduciary excellence, by guiding them through practical aspects of managing their regulatory requirements and providing a platform for investor reporting and administration. It is our breadth of knowledge on an international scale, our deep industry understanding and our personalised approach for each organisation that we believe distinguishes our team. We can help fund managers to address the challenges and opportunities in the current market.
Solvency II is the new solvency regime for all EU insurers and reinsurers, which also covers the insurance operation of bancassurers.
Proposed EU Directive for Alternative Investment Fund Managers (AIFM)
A proposed EU Directive for AIFM has been drafted (and re-drafted), against a backdrop of calls for increased transparency and monitoring of systemic risk in the financial services arena generally.
Distressed real estate opportunities
In this challenging economic environment, recognising and capitalising on the next opportunity is crucial. The growth of distressed real estate situations may offer valuable investment opportunities in real property or real estate backed debt.
More transactions in the European commercial property market – focus on UK assets
Falls in prime yields are now being reported across the main European real estate markets.
Fund recapitalisation & debt advisory
Refinancing is set to be a major issue for our clients, with one fifth of funds facing some kind of refinancing over the next 12 months.
Management remuneration planning
Changes to tax regimes, notably in the UK and US, are focusing attention on tax efficient remuneration structures and incentivisation structures for fund managers and their teams