Abstract

A lack of research into the cost, investment approach and performance of pension fund real estate investments globally has led to an incomplete understanding of the true performance of real estate investments. Previous studies have focused only on property indices, specific buildings and REITs. In A Global Perspective on Pension Fund Investments in Real Estate, (JPM 2013 Special Real Estate Issue), Aleksandar Andonov, Nils Kok and Piet Eichholtz take that research a step further. Using data from CEM Benchmarking Inc. of Canada, they seek to uncover the real expenses pension funds pay to play in the property sector. In this Practical Applications report, Eichholtz—Professor of Real Estate Finance at Maastricht University—gives practical advice on how pension funds can improve the performance of their real estate holdings.

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