Given the importance of real estate as an investment asset class and the proliferation of closed and open-ended vehicles in the market, to describe property investment-related activities can lead sometimes to misunderstanding and confusion. In addition, across Europe functions are sometimes different and terms are used in different contexts. To avoid this, RICS has published an information paper to define what are the duties and responsibilities of real estate professionals operating in the asset management market.
With the title “Real estate fund, asset and property management: investment services”, RICS offers a clear description of these professions ensuring transparency, fluidity and accountability to those involved in investment services, based on current practice.
According to Richard G. Ray MRICS, lead author of the paper: ”Our aim is to allow property fund, asset and property managers a more complete understanding of each other’s roles and provide valuable property-based input to both real estate practitioners and the client base.”
“The separation of definitions should help investors better understand service-level agreements with designated fund managers, both on existing and new fund ventures as well as provide information for delegation to asset and property managers. Financiers will also hopefully understand corporate finance responsibilities and provide lines of accountability.”
Fund, asset and property managers have distinct and different roles determined by various circumstances, such as local practice, building and fund profile and specific legislation. As such the responsibilities of each role may vary, but the RICS paper provides information about and definitions of generally accepted terminology.