Video: Investors are Looking for Both Predictable Returns and an Understandable Asset Class; RE Meets These Criteria

In this video Dechert partner Johan Terblanche speaks with the Association of the Luxembourg Fund Industry (ALFI) about the Luxembourg Real Estate market. The key results of the ALFI Real Estate Investment Funds Survey 2014 show that Luxembourg continues to increase its market share in global RE funds. In terms of numbers, 22 new RE funds were set up in 2012 and an additional 26 RE funds were launched during the first 10 months of 2013. Mr. Terblanche points out that Luxembourg domiciled RE funds have reached EUR 40 billion of AuM on a net basis. Total growth in these funds since 2004 is 241%.

The main reason why investors and asset managers choose Luxembourg is that this jurisdiction enables them to meet the objectives of all the different players in the market (investors, asset managers, initiators). Nowadays, investors are looking for both predictable returns and an understandable asset class; real estate meets these criteria.

Investors are looking for both predictable returns and an understandable asset class; RE meets these criteria from ALFI on Vimeo.