During the past five years, unlisted and listed indirect real estate investment products have become the primary way for institutional investors to commit capital to real estate. The exponential increase in the number of funds and vehicles available for indirect investment has paralleled the explosion of capital that flowed to the asset class.

In August 2003, INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, tracked 196 unlisted real estate funds with a total gross asset value (GAV) of Ä154 billion. At its peak, in December 2006, that tracking universe had grown to 490 funds with a GAV of Ä329 billion. By December 2008, the GAV had fallen back to Ä287 billion in 484 funds, but this still represented a significant increase over the five-year period.

At the same time, the global REIT market expanded dramatically. From 200