Institutional Real Estate Investment Practices: Swedish and United States Experiences

Brzeski, Jan; Jaffe, Austin J.; Lundström, Stellan

doi:10.1080/10835547.1993.12090714

Cited by 9 publications

(3 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similar results were reported by Brzeski et ai., (1993( ), Louargand (1992 and Rydin et ai., (1990). They reported that Swedish institutional investors were primarily seeking "long-term real retum on equity" for their property investments ( all types ).…”

Section: Respondents Characterisationmentioning

confidence: 96%

A Survey of Institutional Investors' Attitudes and Perceptions of Residential Property: The Swiss, Dutch and Swedish Cases

Montezuma¹

2006

Housing Studies

View full text Add to dashboard Cite

This paper provides evidence about institutional investors' altitudes and perceptions of residential property as an investment assei group in three European countries (Switzer/and, the Nether/ands and Sweden). These countries stand out, with an extraordinari/y large institutional residentia/ ownership, in fac/, residentia/ institutiona/ a//ocation represents about 6%, 2% and 3% of the total institutional investment in the Switzerland, the Nether/ands and Sweden respective/y. Housing is the most important institutional property assei type in Switzerland and the Netherlands, comprising over 52% and 50% of their institutional property portfolios respective/y. ln Sweden residential property plays an important, but not dominant role in the domestic institutional property portfo!ios, representing about 21 % of the institutional property holdings. Using a postal survey of representatives of pension funds, insurance companies, property investment and assei management companies the study analyses the attractiveness of residential property in terms of institutional investment goals. The survey examines the institutional investors' perceptions of housing investment, namely with respect to its returns, vo/ati/ity, iriflation hedging, liabi/ities matching and correlation with shares, bonds and non-residenfial property. Additiona//y, the survey /ooks at the institutional investors' experiences regarding the priva/e rented sector.

show abstract

Section: Respondents Characterisationmentioning

confidence: 96%

A Survey of Institutional Investors' Attitudes and Perceptions of Residential Property: The Swiss, Dutch and Swedish Cases

Montezuma¹

2006

Housing Studies

View full text Add to dashboard Cite

show abstract

“…In addition, the possibility of providing multiple answer options, for instance, when asking for risk assessment techniques, made it difficult to evaluate the relative importance of certain findings. o Most were evaluated by total expected return, followed by cash flow from operations Other relevant findings • 72% and 50% diversified their portfolio by location and property size, respectively • An increasing focus was put on multi-period return models as opposed to single-period assessments Brzeski, Jaffe and Lundström (1993) were the first researchers to undertake a survey about real estate decision-making practices in continental Europe. They surveyed 215 real estate investors in Sweden.…”

Section: Early Studiesmentioning

confidence: 99%

“…I split my group of participants into firms focusing on core and those focusing on value-add investments so that the data is valid and comparable. Apart from that, Brzeski et al (1993) faced the previously discussed issue of biases resulting from mail surveys, which I avoid in my thesis by choosing a different approach to data gathering. De Wit (1996) was the first real estate decision-making researcher to interview respondents face-to-face and not via mail, thereby avoiding poor response rates and a pre-defined answer set.…”

Section: Early Studiesmentioning

confidence: 99%

An Exploration of Real Estate Investment Decisions and the Significance of Green Certificates: Towards a Multi-Attribute Decision Model

Dreger¹

View full text Add to dashboard Cite

Real estate investment decisions are a relevant but understudied topic. This study aims to fill this research gap by exploring real estate investment decisions in the German office market. Given the increasing trend and necessity to account for sustainability across all asset classes, and real estate in particular, I evaluate the role of green certificates in investment decisions in the German office market. I adopt an object-oriented ontological position and a phenomenological epistemology, enabling me to explore decisions without over- or undermining them. My research is split into two phases. In the First Research Phase, I explore decision-making expertise by conducting 22 semi-structured interviews with investment managers active in the German office market. This set of participants is diversified across different firm sizes, origins and investment focuses. As a result of the First Research Phase, I obtain an understanding of the decision-makers’ expertise and the criteria impacting their investment decisions. Furthermore, I devise ten attributes that describe investment decisions in the German office market. A cross-check with the participants and an external expert confirms that the set of attributes accurately represents real estate investment decisions. The Second Research Phase aims to develop the Multi-Attribute Utility Model (MAU) for Office Investments (OffIn-MAU), a model that supports investment decision-making in the German office market. The model allows the user to transform personal views into numbers and to assess up to ten core or value-add investment alternatives at once. To use the model, the respondents allocate relative importance scores to each of the ten attributes. The average of the resulting importance weights indicates the industry consensus on the relative attribute preferences. My research is the first to explore real estate investment decisions and to present a functioning, useful OffIn-MAU model that simplifies real estate decision-making. I have strong confidence in the results of my research because they are validated by a knowledgeable real estate expert and the participants themselves and have a high degree of coherence with the current state of the literature. My research also reveals considerable differences between accounting for environmental, social and governmental (ESG) criteria among core and value-add investments. Even within both risk classes, the high range of importance weights of the attribute and its standard deviations indicated significant variability in its perceived importance among the respondents. I conclude that sustainability in real estate is an emerging topic known to all investment decision-makers, while its importance for decision-makers varies and it affects core investments first. Nonetheless, considering increasing regulatory requirements and the prevalence of ESG criteria, sustainability will become even more relevant across all investment classes soon.

show abstract

Envisioning

2011

Global Real Estate Investment Trusts

View full text Add to dashboard Cite

Institutional Real Estate Investment Practices: Swedish and United States Experiences

Cited by 9 publications

References 21 publications

A Survey of Institutional Investors' Attitudes and Perceptions of Residential Property: The Swiss, Dutch and Swedish Cases

A Survey of Institutional Investors' Attitudes and Perceptions of Residential Property: The Swiss, Dutch and Swedish Cases

An Exploration of Real Estate Investment Decisions and the Significance of Green Certificates: Towards a Multi-Attribute Decision Model

Envisioning

Contact Info

Product

Resources

About