Baar-Zug, 11 February 2011
Partners Group Thomson Reuters Private Real Estate Index shows outperformance of private real estate investments
First results of the Partners Group Thomson Reuters Private Real Estate Index illustrate that the industry’s claim of generating strong risk-adjusted returns is also quantitatively confirmed. While not unscathed by the recent crisis, private real estate investments were able to outperform traditional stock and bond portfolios by a significant margin. During the ten year period ending on 30 June 2010, private real estate investments generated a return of 8.7% p.a. compared to the MSCI World which generated a return of -0.5% p.a.
Partners Group and Thomson Reuters have partnered to institutionalize private real estate data collection and analysis to further enhance the understanding and insights into this growing private markets asset class. The index is based on net fund returns from firms around the globe focusing on value-added and opportunistic strategies. Going forward, Partners Group and Thomson Reuters expect to further increase the representativeness of the index by adding new firms to the database. Steffen Meister, Chief Executive Officer of Partners Group, comments, "As Partners Group and Thomson Reuters have teamed up to leverage our industry network and Thomson Reuters’ established products, it has been possible to generate a high quality database with significant value-add for users and the wider industry community. The data confirms the merits of private real estate investments, having outperformed global stock markets by 900 bps over the last decade."
The data of the Partners Group Thomson Reuters Private Real Estate Index is available in aggregate format on Thomson Reuters products. A subset of data is also available via participation in the survey. Firms who are interested in participating in the survey are invited to contact Angelika Eibl (angelika.eibl(at)partnersgroup.com).