22 Jan 2025

Vision 2025: The Evolution of Funds – Event Summary

On 21st January we held our AREF Vision 2025 event, hosted by Evelyn Partners in London.  It brought together experts from across the real estate investment industry to discuss the current state of real estate funds and their role within private markets. The line-up featured presentations, panel discussions, and opportunities to share perspectives on market trends and key challenges.

Opening Remarks
Jason Dunlop, Head of Real Estate Tax at Evelyn Partners, welcomed attendees and outlined the agenda. He also provided an update on Evelyn Partners’ rebranding to S&W, planned for this quarter. The rebrand reflects a return to the firm’s heritage as Smith & Williamson and its focus on offering professional accountancy and advisory services to the real estate sector.

A Brief History of AREF
Rachel Portlock, Head of Research at AREF, gave an overview of AREF’s history, tracing its origins to the 1970s as an informal forum for property unit trust managers. She noted key milestones over the decades and how they helped shape the association as it stands now. You can read more about the AREF history here.

Keynote Presentation: The Evolution of Funds
Simon Marx, Head of Research at Lothbury Investment Management, delivered the keynote address. He identified and examined three key drivers behind the evolution of real estate funds and their performance over time:

  • Cyclical Drivers: Changing investor priorities and market conditions have had a significant impact on fund strategies.
  • Globalisation: Increased international investment in UK real estate, particularly from the US and Far East, has contributed to market development.
  • Behavioural Trends: Simon highlighted the influence of trust, regulatory changes, and major events such as the global financial crisis and Brexit on investor sentiment.

Simon also discussed the growth of debt funds, which now account for approximately 40% of lending. He noted that while specialist funds have delivered strong results, they have not seen substantial inflows, potentially due to competition from other investment structures such as REITs.

Panel Discussion: Macro Trends in Real Estate

A panel discussion featuring Anne Copeland (Newcore Capital), Tim Russell (Aviva Investors), and James Sivyer (Redington) explored key market trends:

  • Interest Rates: The panel considered the effect of higher interest rates on real estate investment, reflecting both sentiment and broader market risks.
  • Transition from DB to DC Pension Schemes: Discussions focused on progress in attracting defined contribution pension capital to real estate, including the need for consolidation and improved liquidity.
  • Long-Term Asset Funds (LTAFs): Tim Russell outlined the development of LTAFs and their role in addressing liquidity challenges and broadening investment access.
  • Reserved Investor Funds (RIFs): Anne Copeland introduced the potential of RIFs as a cost-effective and tax-efficient solution for onshore investments.

Policy and Research Initiatives
Paul Richards, CEO of AREF, shared updates on the association’s policy work, including pension reform, attracting foreign investment, and advocating the role of real estate within the Government's industrial and economic strategies. He announced a research project aimed at defining real estate’s place within private markets allocations and shared progress on expanding membership in the residential and debt sectors. Paul also discussed collaboration with the British Property Federation (BPF) and the Investment Property Forum (IPF) to explore creating a unified organisation to represent UK real estate.

Conclusion and Next Steps
The event concluded with a reminder of upcoming activities, including a follow-up session in February focusing on Long-Term Asset Funds (LTAFs) three years on (link to event). Attendees were encouraged to engage with AREF and its initiatives to shape the future of the real estate investment sector.

Missed the Event?

Vision 2025 provided a platform for informed discussion and collaboration, offering attendees valuable insights into the direction of the industry. If you couldn't attend, AREF members can log-in and view the slides, recording and audio podcast below.

Related Materials:

Slides:

AREF members can click here or the image below to log-in and download the slides.

Recording:

To follow

Podcast:

To follow

For any enquiries relating to this event, please do email us at [email protected].

Photos:

 

Tags

Post-event Materials Event summary Events

Author

Clare Whyte

Clare Whyte

Head of Marketing & Events, AREF

Clare is responsible for all aspects of the planning, development and execution of the marketing strategy for AREF. 

Clare leads on event management, liaising with committees and members to schedule, plan and deliver an effective events calendar for the association.  She also has overall responsibility for brand, as well as the design, development and production of marketing across both digital and offline channels, including the website.  

Return to listing