Manager Selection

Challenges

  • High steering complexity at institutional investors regarding the directly held real estate portfolio and continuously high investment requirement
  • Various external managers in different vehicle constructs
  • Target Return of 4% to 5% is not achieved, high steering effort and fees for external managers

Project approach

  • For new contracts: ex ante manager assessment based on extended catalogue of criteria INREV, e.g. organisation, risk management, remuneration structures, expertise or credibility in the market
  • For existing contracts: ex post manager assessment based on audits and experiences currently made with the purpose of influence and establishment of negotiation power
  • Creation of fine conception of processes/interfaces, control mechanisms, reporting and risk management requirements
  • Preparation of a Roadmap for the migration: Measurement plan for quality and data assurance up to go live of new managers as well as professional manager selection process via market testing, RfI and Beauty Contest

Results

  • Homogenous, consolidated reporting
  • Efficient steering of real estate portfolio
  • Transparency regarding manager structures and outsourcing partners