A Re-Examination of Real Estate Investment Decisionmaking Practices

Farragher, Edward J.; Kleiman, Robert T.

doi:10.1080/10835547.1996.12089521

Cited by 37 publications

(28 citation statements)

References 7 publications

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“…The surveys used questions similar to those in Wiley's (1976) survey, as well as additional questions on areas such as how institutional investors invested in real estate, the composition of their portfolios and the level of international investments. The majority of surveys have been undertaken in the United States (Farragher, 1982;Farragher and Kleiman, 1996;Farragher and Savage, 2008;Louargand, 1992;Page, 1983;Webb, 1984;Webb and McIntosh, 1986;Worzala and Bajtelsmit, 1997). Only a few surveys have been undertaken in Australia (Boyd et al, 1995;Newell, 2008;Newell et al, 1993;Reddy, 2012;Reddy et al, 2014 andKish, 2000).…”

Section: Literature Reviewmentioning

confidence: 99%

Decision-making in the management of property investment by Australian superannuation funds

Hutcheson

Newell

2018

Australian Journal of Management

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Decision-making in property investment by superannuation funds is an important investment decision, but it is different to their decision-making on other asset classes included in their asset portfolios. The large value and heterogeneous nature of individual pieces of real estate make the market for real estate relatively illiquid and subject to larger transaction costs than other asset classes. Based on interview surveys of Australian superannuation funds, using the analytical hierarchical process (AHP), we identified strategic decision-making as being the most important factor used by the superannuation funds when making decisions on the management of their property investment portfolio. Comments during the interviews indicated that their decisions were influenced by restrictions in their fund’s investment mandate and the level of funds that they had to invest. The AHP technique has allowed this research to provide a more in-depth understanding of the management of decision-making factors than previous surveys.

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Section: Literature Reviewmentioning

confidence: 99%

Decision-making in the management of property investment by Australian superannuation funds

Hutcheson

Newell

2018

Australian Journal of Management

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“…This is a methodology that helps to find an optimal solution by respecting the system constraints that characterize the problem to be solved. Starting from the second half of the last century, linear programming has been applied in numerous problems of project management [31,[38][39][40][41][42][43][44] and land-use planning [45,46], as well as implementing geographic information systems [47][48][49], decision maps [50,51], urban-planning and economic project evaluation [52][53][54][55].…”

Section: The Optimization Algorithmmentioning

confidence: 99%

An Economic Analysis Algorithm for Urban Forestry Projects

et al. 2019

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The second half of the 20th century was characterized by rapid growth of the urban population and lack of attention to environmental quality in the urbanizes territories. Thus, the development of many cities during that period took place through policies which, over time, resulted in a disaggregated landscape, both in morphological and functional terms. In some cases, these policies have caused the creation of land portions without a specific characterization, and the generation of urban voids that negatively affect the city’s development. To solve this problem, the public administration sectors of many countries are looking for new intervention strategies that are feasible from a social and economic point of view which are able to guarantee sustainable development. From this perspective, the execution of urban regeneration initiatives, including forestation, allows for the improvement of both environmental quality and citizens’ well-being, and promotes economic development. Considering the multiple effects that these initiatives can generate and the limited availability of public and private resources, it is appropriate to use multi-criteria decision support tools through which it is possible to evaluate the interventions’ complexity and best identify the city areas that lend themselves to be recovered and improved through the forestation. The aim of this work is to develop a support tool for public administrations aimed at identifying the optimal forestry projects’ location according to criteria that not only refer to financial type, but also their social, cultural, and environmental nature. Using Discrete Linear Programming algorithms, the model has been tested through a theoretical case study and reveals the advantages and limitations of the model, as well as future research prospects.

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“…De Wit (1996) undertook a similar survey to Webb (1984) and Louargand (1992) on insurance companies and pension funds in the Netherlands. Farragher and Kleiman (1996) surveyed institutional investors in the United States and included questions on the entire decision making process with respect to qualitative and quantitative risk assessment. The survey was repeated by Farragher and Savage (2008) a decade later and found very little difference to most of the responses made to the earlier survey.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The survey was repeated by Farragher and Savage (2008) a decade later and found very little difference to most of the responses made to the earlier survey. The only major difference was that in the Farragher and Kleiman's (1996) survey 70% of the respondents used qualitative risk assessment while in Farragher and Savage (2008) survey it had decreased to 70%. Surveys on property investment by institutional investors in Australia have been undertaken by Newell, Stevenson and Rowland (1993), Boyd, MacGillivray and Schwartz (1995), Rowland and Kish (2000), Newell (2008) and Reddy (2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Decision-making in property Investment by Property Fund Managers

Hutcheson¹,

Newell²,

Ltd³

et al. 2018

25th Annual European Real Estate Society Conference

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The assets under management of property fund managers have been increasing over the last decade. The low interest rate environment and stability of property values relative to other asset class values has made property an attractive to wholesale investors. A large number of these investors are superannuation funds, who invest in property indirectly through property fund managers. As the characteristics of property, such as large value, heterogeneity, illiquid and large transaction costs, are so different to other asset classes, decision making by property fund managers is not expected to be the same as decision making on other asset classes. This paper surveys fourteen property fund managers on the factors that influence their decision making. The analytical hierarchical process (AHP) is used to allow pair-wise comparisons of the relative factors to be undertaken. This allows the factors to be ranked in order of importance. The factor strategic decision making is found to be considerably more important than the other factors in the survey. This is very different to the findings of earlier surveys in the United States, the Netherlands and Australia, which found geographical location and property type to be the preferred factors.

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A Re-Examination of Real Estate Investment Decisionmaking Practices

Cited by 37 publications

References 7 publications

Decision-making in the management of property investment by Australian superannuation funds

Decision-making in the management of property investment by Australian superannuation funds

An Economic Analysis Algorithm for Urban Forestry Projects

Decision-making in property Investment by Property Fund Managers

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