UK/EUROPE - New indices for European property markets will trigger interest from UK pension schemes, fund managers predict.
Investment Property Database, which already has indices for the UK, Dutch, Swedish and Irish markets, is planning to publish similar data for other European countries.
Fund managers believe this increased transparency will make the markets more attractive to UK pension schemes.
UK’s Aberdeen Property Investors director Charles Weeks said the creation of these indices would put European property on par with European stocks in terms of their appeal to schemes.
He said: “Investors will be more willing to invest in the European market. They’ll be able to compare it, benchmark it and assess the performance of their managers.”
Schroder Property Investment Management UK executive director Bill Hughes agreed and said: “In a number of markets, a lack of data transparency and lack of performance benchmarks does represent an obstacle to institutional investment.
“Any market that IPD is capable of improving data flow in is potentially a beneficiary of greater momentum of institutional investment in property.”
But UBS Global Asset Management head of UK real estate Cliff Hawkins said while the availability of data was important to investors, it would not cause a “gold rush”.
He said: “I think it is a step in the right direction, but it will not be a driver.”
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