Wind of change - Towards a mainstream-like operating model for the real estate industry
Regulations are shaping the real estate (RE) world. The industry and the alternative funds market in general are now caught in the regulatory spotlight and have not escaped tighter scrutiny and pressures for transparency from regulators and investors alike.
Following the global transformation of the retail fund industry in recent decades, new operating models spanning from the front-middle to back-office operations of RE asset and investment managers to service providers have emerged. These are not just necessary for adapting to current legal and industry guidelines but are key requirements for business viability, service marketability and expansion.
Major regulations that have pushed essential changes in the asset management industry include the Dodd-Frank Act and FATCA in the US, and the AIFMD and forthcoming PRIPS and BEPS OECD recommendations in Europe. Many of the RE structuring vehicles and investment strategies require compliance under this new wave of laws, directives and their implementation requirements. Investor and industry standard-setting bodies such as INREV are likewise influential in clamouring for industry reforms and standardisation of the highly fragmented, inadequately automated and vastly diversified RE business.
Moreover, the needs of investment managers are constantly changing, with some requiring more streamlined middle to back office, bridge financing, and a single point of contact for a cross-border and multi-jurisdictional service offering.
REflexions issue 1 - April 2015
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.