The survey analyzes the fund allocations, risk and return assumptions, expected capital flows and real estate investment strategies of 101 of the largest tax-exempt investors in real estate. This elite group manages $100 billion in real estate holdings or 43% of all tax-exempt real estate assets.
Here are a few of the larger findings of this survey:
Foreign investing: Incorporating foreign investing into 2006 investment strategies is echoed throughout the survey. Plan sponsors disclose that they are becoming more comfortable with investing overseas. More than 10% of new capital is targeted for foreign assets.
Capital Flows: Capital flows to real estate are expected to increase by 15% this year to an estimated $59 billion.
Increasing Manager Relationships: In the past five years, the number of third-party relationships managed by plan sponsors has increased by 50%. Investors are feeling the pressures of more demanding workloads brought on by this increase.
