Acknowledgments: The authors acknowledge the generous support of ANREV, MSCI and Real Capital Analytics in providing the necessary data for analysis. They are also grateful for the constructive comments by four reviewers.Peer reviewedPublisher PD

Hoesli, Martin

Marzuki, Muhammad Jufri

Neng Lai, Rose

Newell, Graeme

English

In the aftermath of the COVID-19 pandemic, non-core investments are gaining traction amongst institutional investors due to the shifting preference towards investment vehicles that position higher on the risk-return curve. Non-listed value-add real estate funds in Japan are one such vehicle. This research develops a comprehensive bespoke benchmark total return index using the ANREV database to reflect the performance of Japan-focussed non-listed value-add real estate funds. We compare the performance of such funds with that of other asset classes and perform portfolio and regression analyses. We conclude that there are several advantages to investing in those funds, including: (1) strong absolute total return performance, (2) competitive risk-adjusted performance, and (3) significant portfolio diversification potential in a mixed-asset portfolio context. The strategic implications for real estate investors are also assessed

Jufri Marzuki

Lai, Rose Neng

EconStor (ZBW Kiel)

The performance and diversification potential of non-listed value-add real estate funds in Japan

In the aftermath of the COVID-19 pandemic, non-core investments are gaining traction amongst institutional investors due to the shifting preference towards investment vehicles that position higher on the risk&ndash;return curve. Non-listed value-add real estate funds in Japan are one such vehicle. This research develops a comprehensive bespoke benchmark total return index using the ANREV database to reflect the performance of Japan-focussed non-listed value-add real estate funds. We compare the performance of such funds with that of other asset classes and perform portfolio and regression analyses. We conclude that there are several advantages to investing in those funds, including: (1) strong absolute total return performance, (2) competitive risk-adjusted performance, and (3) significant portfolio diversification potential in a mixed-asset portfolio context. The strategic implications for real estate investors are also assessed

Martin Hoesli

Multidisciplinary Digital Publishing Institute

The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan

Acknowledgments: The authors acknowledge the generous support of ANREV, MSCI and Real Capital Analytics in providing the necessary data for analysis. They are also grateful for the constructive comments by four reviewers.Peer reviewe

Aberdeen University Research

https://aura.abdn.ac.uk/bitstream/2164/18475/1/Hoesli_etal_JRFM_The_Performance_And_VoR.pdf

The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan

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EconStor (ZBW Kiel)

Multidisciplinary Digital Publishing Institute

Aberdeen University Research