Global Trends in Real Estate Finance

by Newell, Graeme; Sieracki, Karen

• ISBN13: 9781405151283
• ISBN10: 1405151285
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-12-30
• Publisher: Wiley-Blackwell

Summary

To operate effectively in todayrs"s dynamic global real estate markets, it is essential to understand the complex processes that underpin them. This up-to-date work, which brings together contributions from industry and academic experts from around the world, is a valuable corollary to effective investment decision-making within the property sector and will be of interest to post-graduate property students, researchers and practising real estate investors.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.

Author Biography

Graeme Newell, Professor of Property Investment, School of Construction ,Property and Planning, University of Western Sydney

Karen Sieracki, director of KASPAR Associates Ltd - property research

Table of Contents

Contributors	p. xi
Preface	p. xix
Products
Global Real Estate Investable Universe Continues to Expand and Develop	p. 3
Introduction	p. 3
Global core real estate universe: $8 trillion and growing	p. 4
Why have REITs succeeded?	p. 7
REIT proliferation: thriving in 18 countries and counting	p. 9
Early growth cycle: only the tip of the iceberg	p. 14
Relative risk and return	p. 16
The US Real Estate Investment Trust (REIT) Market	p. 19
Introduction	p. 19
The evolution of US REITs	p. 19
US REITs: creation to 1993	p. 20
US REITs: the Modern Era	p. 23
The investment performance of REITs	p. 28
The future of REITs	p. 30
Progress on REIT Regimes in Europe	p. 34
Introduction	p. 34
Developments in France: SIIC 2/3/4 and the OPCI	p. 34
OPCI: 'the non-listed SIIC	p. 36
The German REIT	p. 37
The UK REIT	p. 40
EU law and REITs: what are the issues?	p. 44
Listed Property Trusts in Australia	p. 46
Background to LPTs	p. 46
LPT regulatory framework	p. 47
LPT profile	p. 47
LPT performance analysis	p. 51
Recent issues in the strategic development of LPTs	p. 53
Changing LPT and property landscape in 2007-2008	p. 61
Conclusion	p. 62
Asian REITs: Playing the Yield Game	p. 64
REIT markets in Asia	p. 64
Ways to enhance distribution yield	p. 70
Yield-accretive acquisitions	p. 75
Conclusion	p. 78
European Real Estate Unlisted Vehicles: A Mature Market Now or Is There More to Come?	p. 82
Introduction	p. 82
Characteristics of European real estate unlisted vehicles	p. 82
Performance of European real estate unlisted vehicles	p. 92
Management fees	p. 93
Discussion and conclusion	p. 97
Constructing a Global Real Estate Investment Index	p. 100
Introduction	p. 100
Top down or bottom up?	p. 101
Rolling out national market indices	p. 102
The first IPD multi-market index - the pan-European	p. 105
...and finally the world - IPD's first global index	p. 108
Property Derivatives: The Story So Ear	p. 114
Introduction	p. 114
The history and innovation behind the property derivatives market	p. 114
The drivers for change	p. 117
Pricing and underlying index activity	p. 121
Alternative indices and products being traded	p. 127
Has the market achieved the results expected of it?	p. 130
How have derivatives changed the market place?	p. 135
Future expectations, unintended consequences and lessons learned	p. 136
Conclusions	p. 138
Property Markets in Central and Eastern Europe	p. 140
Introduction	p. 140
Development of real estate markets	p. 141
Property markets, data availability and economic competitiveness	p. 145
Bank lending on property in central and eastern Europe	p. 148
Conclusions	p. 153
Islamic Finance and Shariah-Compliant Real Estate Investment	p. 157
Introduction	p. 157
Defining SCI	p. 162
Shariah funds in the research agenda	p. 177
Conclusion	p. 183
Processes
Socially Responsible Property Investment - Background, Trends and Consequences	p. 193
Introduction	p. 193
Social responsibility and sustainable development - background	p. 194
The principles for responsible investment	p. 196
Trends and concepts within the property market	p. 200
The benefits of sustainable buildings and of SRIs	p. 209
Criteria and assessment tools	p. 214
Realisation of SRPIs	p. 220
Implications for property professionals	p. 224
Conclusion and recommendations	p. 229
Corporate Governance in the Real Estate Industry	p. 239
Introduction	p. 239
Reasons for the rising importance of corporate governance	p. 241
Existing corporate governance principles for the real estate industry	p. 244
Impact of corporate governance on firm value	p. 249
Research agenda for corporate governance in the real estate industry	p. 251
Appendices	p. 253
The Future of Real Estate Education	p. 262
Introduction	p. 262
The demand for real estate skills	p. 262
Paradigms for real estate education	p. 265
A real estate body of knowledge	p. 269
The methods of real estate education	p. 272
The future of real estate education	p. 274
Index	p. 279
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