The Alternative Investment Funds Management Directive (AIFMD) has made the role of risk management more important and therefore an integral part of the investment management of alternative investments including real estate.
Although the Commission Delegated Regulation (EU) No 231/2013 supplementing the Directive (Level II) has further clarified the type of risks that need to be addressed for alternative assets, specific guidance on real estate risks has not yet been provided. This called for drawing necessary industry guidance on the matter.
Given the importance of Europe's, and in particular, Luxembourg's alternative investment fund industry, RICS Europe has developed this guidance note to advise the industry on risk management of real estate investment funds.
The purpose of the guidance note is to:
* Create a standard library of real estate industry risks
* Develop specific guidance on real estate risk management to assist AIFMs on questions such as:
• What the role of the AIFM real estate risk manager is
• What the specific checks and controls that needs to be implemented by the AIFM risk manager are
• How to identify key risks for the various property sectors and real estate investment styles
• Which type of risks should be emphasised throughout the real estate investment life cycle (i.e. acquisition, holding, disposal phase)
* Provide an example of AIFM real estate risk management framework for a direct European core office fund.
Join us to hear our guest speakers, co-authors of the Guidance Note, present their work.