The real estate industry as a whole has gone through tough times over the past few years due to the financial crisis. This also had a huge impact on the non-listed real estate fund industry. Many non-listed real estate funds ran into trouble, mainly due to the declining values resulting from rising yields, decreasing rents and increasing vacancy in combination with high leverage.

It did not seem to matter whether they invested in retail, offices or residential, whether the management style was core, value-add or opportunistic, or whether funds were open-end or closed-end. Through the whole non-listed real estate fund spectrum, funds could be found that were facing difficulties. Many still are.

In my work in the Institutional Clients department at ING Real Estate Investment Management(REIM) Europe, I have personally experienced the impact of