INREV is to ‘investigate’ a potential hole in corporate governance that might arise when a manager transfers its economic interest in a property fund.
The European Association for Investors in Non-Listed Real Estate Vehicles is examining how many fund documents provide a specific co-investment threshold that a manager must maintain, and whether a breach of that threshold triggers default and the possibility of investors removing the manager.
The work forms part of the association’s on-going corporate governance report.
Alasdair Evans, chief operating officer of Hermes Real Estate Investment Management, said he hoped to provide findings at INREV’s Dutch member seminar in Amsterdam on 15 February.
INREV held its London Winter Seminar last week at which Evans raised the issue of managers transferring co-investment capital and the linked question mark over subsequent allignment of interests.
See the March issue of PERE magazine for more detail.