In advance of the event, Delano spoke with Jeff Rupp, director of public affairs at Inrev, the European Association for Investors in Non-Listed Real Estate Vehicles. He presents the “Inrev perspective of European non-listed real estate vehicles” session, Wednesday 2 December at 1:35pm.
Aaron Grunwald: What do you want the audience to get most from your session?
Jeff Rupp: In my session, the points I’d like the audience to take away are the three major forces that I see influencing the development of European non-listed real estate vehicles today: the covid crisis, Brexit and the AIFMD review. Their combined influence will have a major impact on real estate funds in different ways for many years.
From your point of view, what has been the biggest impact of the coronavirus pandemic on real estate funds this year?
In the short term, it has accelerated trends that were already underway, especially performance challenges affecting demand for retail property and increased demand for logistics as live shopping is being partially supplanted by online commerce. In the long term, the EU recovery package will significantly increase public borrowing, which will likely result in inflationary pressure and the need to raise tax revenue, possibly from real estate, at least in part.
What are the biggest changes you expect to see in 2021?
I’m optimistic that with the development of a covid vaccine and widespread testing becoming available, the economic recovery will take a firm hold. We’ll see people returning to work, more travel for work and for pleasure, and a rise in disposable incomes, all of which impact use of and demand for real estate. With extended accommodative economic and fiscal policy, interest rates will remain low, which will continue to support demand for real estate as investors search for attractive risk-adjusted returns.
Aside from your own talk at the ALFI event, which session are you most looking forward to hearing, and why?
The whole programme looks great, but I think the session that I’m looking forward to hearing the most is “Regulatory outlook: What are the priorities for alternative asset managers” [editor’s note: Wednesday 2 November at 10:40am]. Claude Niedner’s on the panel and, with his extensive experience and knowledge of the industry, his comments are sure to be both interesting and insightful.