Managers of top funds awarded

Experts agree that property market fundamentals across Europe are still uniformly on the weak side, but there was cause to celebrate at the IPD (Investment Property Databank) European Investment Awards 2011, when the real estate performance analysis company recognized successful real estate fund portfolios at its European conference in Amsterdam May 19.

Among the winners was a Central and Eastern Europe (CEE) regional fund, PBWI, managed by AEW Europe, which achieved the highest total return relative to the appropriate regional or sector benchmark.

The winners were determined by IPD's performance measurement procedures, which evaluate the performance of pension and life funds, pooled funds, property investment companies and other professionally managed real estate portfolios across Europe.

The awards identify consistently measured real estate investment performance across seven national markets and three European regions, split into: eight balanced fund awards, eight specialist fund awards and one regional fund award.

Speaking at the awards ceremony, Ian Cullen, co-founding director of IPD, said the awards recognized the best real estate investment managers who continue to produce results in a "still very difficult and challenging property market."

Matthias Thomas, CEO of European property funds association INREV, emphasized not only the challenges of the market environment for fund management, but also of new European regulation like the Basel III capital requirements, which he said are disconcerting for investors.

"These new regulations will create entrance barriers for new fund managers, and we'll see consolidation as a consequence," Thomas said. "It's not only about allocation but about capital available and cost of product. ... Things are not looking very [optimistic] for the future, and we need to be concerned about our potential to develop, which enables the sector to grow."

Emily Thompson can be reached at
ethompson@praguepost.com