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Article
Publication date: 1 April 2014

Wejendra Reddy, David Higgins and Ron Wakefield

In Australia, the A$2.2 trillion managed funds industry including the large pension funds (known locally as superannuation funds) are the dominant institutional property…

1107

Abstract

Purpose

In Australia, the A$2.2 trillion managed funds industry including the large pension funds (known locally as superannuation funds) are the dominant institutional property investors. While statistical information on the level of Australian managed fund investments in property assets is widely available, comprehensive practical evidence on property asset allocation decision-making process is underdeveloped. The purpose of this research is to identify Australian fund manager's property asset allocation strategies and decision-making frameworks at strategic level.

Design/methodology/approach

The research was undertaken in May-August 2011 using an in-depth semi-structured questionnaire administered by mail. The survey was targeted at 130 leading managed funds and asset consultants within Australia.

Findings

The evaluation of the 79 survey respondents indicated that Australian fund manager's property allocation decision-making process is an interactive, sequential and continuous process involving multiple decision-makers (internal and external) complete with feedback loops. It involves a combination of quantitative analysis (mainly mean-variance analysis) and qualitative overlay (mainly judgement, or “gut-feeling”, and experience). In addition, the research provided evidence that the property allocation decision-making process varies depending on the size and type of managed fund.

Practical implications

This research makes important contributions to both practical and academic fields. Information on strategic property allocation models and variables is not widely available, and there is little guiding theory related to the subject. Therefore, the conceptual frameworks developed from the research will help enhance academic theory and understanding in the area of property allocation decision making. Furthermore, the research provides small fund managers and industry practitioners with a platform from which to improve their own property allocation processes.

Originality/value

In contrast to previous property decision-making research in Australia which has mainly focused on strategies at the property fund investment level, this research investigates the institutional property allocation decision-making process from a strategic position involving all major groups in the Australian managed funds industry.

Details

Journal of Property Investment & Finance, vol. 32 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 May 2020

Sarah Louise Sayce and Syeda Marjia Hossain

The paper investigates the initial impacts on asset management and valuation practice of the Minimum Energy Efficiency Standard (MEES) introduced in England and Wales from…

Abstract

Purpose

The paper investigates the initial impacts on asset management and valuation practice of the Minimum Energy Efficiency Standard (MEES) introduced in England and Wales from April 2018 for new lettings.

Design/methodology/approach

The paper reports findings from a small-scale pilot study of valuers, asset managers, lawyers and building consultants. Interviews were conducted over the summer of 2019 and explored the impact on practice and market values and perceived links to the carbon reduction agenda. Data were analysed thematically manually and using NVivo software.

Findings

Participants welcomed MEES but many had doubts about the use of energy performance certificates (EPCs) as the appropriate baseline measure. Compliance was perceived as too easy; further, enforcement is not occurring. Vanguard investors have aligned portfolios for carbon reduction; others have not. Lease practices are changing with landlords seeking greater control over tenant behaviours. Valuers reported that whilst MEES consideration is embedded in due diligence processes, there is limited value impact.

Research limitations/implications

The study is limited by its small-scale and that the MEES regulations are not yet fully implemented. However, the research provides early findings and lays out recommendations for future research by identifying areas in which the regulations are/are not proving effective to date.

Practical implications

The findings will inform investors, consultants and policy makers.

Social implications

Achieving energy efficiency in buildings is critical to driving down carbon emission; it also has economic and social benefits through cost savings and reducing fuel poverty.

Originality/value

Believed to be the first post-implementation qualitative study of MEES.

Details

Journal of Property Investment & Finance, vol. 38 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Open Access
Article
Publication date: 24 July 2020

Maximilian M. Spanner and Julia Wein

The purpose of this paper is to investigate the functionality and effectiveness of the Carbon Risk Real Estate Monitor (CRREM tool). The aim of the project, supported by…

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Abstract

Purpose

The purpose of this paper is to investigate the functionality and effectiveness of the Carbon Risk Real Estate Monitor (CRREM tool). The aim of the project, supported by the European Union’s Horizon 2020 research and innovation program, was to develop a broadly accepted tool that provides investors and other stakeholders with a sound basis for the assessment of stranding risks.

Design/methodology/approach

The tool calculates the annual carbon emissions (baseline emissions) of a given asset or portfolio and assesses the stranding risks, by making use of science-based decarbonisation pathways. To account for ongoing climate change, the tool considers the effects of grid decarbonisation, as well as the development of heating and cooling-degree days.

Findings

The paper provides property-specific carbon emission pathways, as well as valuable insight into state-of-the-art carbon risk assessment and management measures and thereby paves the way towards a low-carbon building stock. Further selected risk indicators at the asset (e.g. costs of greenhouse gas emissions) and aggregated levels (e.g. Carbon Value at Risk) are considered.

Research limitations/implications

The approach described in this paper can serve as a model for the realisation of an enhanced tool with respect to other countries, leading to a globally applicable instrument for assessing stranding risks in the commercial real estate sector.

Practical implications

The real estate industry is endangered by the downside risks of climate change, leading to potential monetary losses and write-downs. Accordingly, this approach enables stakeholders to assess the exposure of their assets to stranding risks, based on energy and emission data.

Social implications

The CRREM tool reduces investor uncertainty and offers a viable basis for investment decision-making with regard to stranding risks and retrofit planning.

Originality/value

The approach pioneers a way to provide investors with a profound stranding risk assessment based on science-based decarbonisation pathways.

Details

Journal of European Real Estate Research , vol. 13 no. 3
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 30 September 2019

Benjamin Gbolahan Ekemode and Abel Olaleye

In a bid to broaden the understanding of the real estate investment decision-making framework, the purpose of this paper is to examine the real estate asset allocation…

Abstract

Purpose

In a bid to broaden the understanding of the real estate investment decision-making framework, the purpose of this paper is to examine the real estate asset allocation decision-making practices of real estate funds in Nigeria, a developing economy. This is with a view to providing information toward enhancing real estate investment decisions.

Design/methodology/approach

A mixed-methods approach comprising a combination of literature review, expert interviews and semi-structured questionnaire survey is adopted for this study. Through literature review and expert interviews, the asset allocation decision-making process of institutional real estate funds was identified. Based on the literature review and expert discussions, a semi-structured questionnaire was developed and self-administered on fund/portfolio managers of 59 institutional real estate funds in Nigeria to investigate their asset allocation decision-making practice. Data were analyzed using descriptive and inferential statistics for the closed-ended questions while the open-ended questions were content analyzed.

Findings

The findings revealed that the asset allocation decision-making process utilized by public and private real estate funds follows an opportunistic asset accumulation approach. The decision-making process also varies depending on the nature of the fund. Further findings showed that government policies, political uncertainties and regulatory mechanism motivate asset allocation decisions. Moreover, majority of the sampled real estate funds employed a combination of in-house personnel and external consultants (hybrid), while mean/standard deviation and cash flow analysis (DCF, NPV) were mostly utilized by the funds in making property investment decisions.

Practical implications

The findings implied that the real estate asset allocation decision-making process of institutional property investors in Nigeria deviates from the normative model of the asset allocation process prescribed in the literature and varies depending on the nature of the real estate funds. As such, familiarization of institutional investors with government policies, political climate and other regulatory mechanism (barriers to entry) guiding the ownership and operation of real estate assets in the country could improve their real estate investment decisions.

Originality/value

The study complements and extends existing literature on real estate asset allocation decision-making process of institutional investors from the viewpoint of the actors involved in a developing African economy.

Details

Property Management, vol. 38 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 9 November 2021

Nicola Livingstone and Danielle Sanderson

The UK's purpose-built student accommodation (PBSA) sector has seen significant institutional investment in recent decades. This paper unpacks contemporary trends and…

Abstract

Purpose

The UK's purpose-built student accommodation (PBSA) sector has seen significant institutional investment in recent decades. This paper unpacks contemporary trends and perspectives on the sector. It questions whether PBSA has moved from being an “alternative” to “mainstream” residential asset class, framing the analysis through the lens of market maturity.

Design/methodology/approach

The methods triangulate perspectives drawn from literature on the evolution of PBSA as an asset class with illustrations of investment trends across the UK between 2005 and 2020 using data from Real Capital Analytics (RCA), combined with findings from 40 semi-structured interviews with investors and stakeholders in PBSA in the UK London is the focus of the work, whilst other regional cities are integrated for comparison.

Findings

The results demonstrate that London's PBSA market is ahead of trends currently being replicated in regional cities. However, the regions currently offer greater return potential and opportunities for risk taking compared to London, where yields are compressed, and the market is considered lower risk. The concept of maturity remains useful as a framework for evaluating markets, however a more granular analysis of sectors is necessary to further understand asset classes within sectors. PBSA continues to trade at a premium across the UK; it is considered the most mature residential asset class.

Practical implications

The emergence of PBSA as an asset class continues to play a developing role within the residential sector and UK investment market. Risk, value and local context remain key when integrating PBSA into institutional portfolios, and as the first to consider the UK market from a qualitative research approach, this research provides a snapshot of these influences in 2021.

Originality/value

Our approach offers original insight into investment trends across the UK and is the first to focus reflections on the London market specifically. The research highlights the role of PBSA as a vanguard asset class for investors into residential, situating its growth within the framework of market maturity and drawing out market nuances from interviews.

Details

Journal of Property Investment & Finance, vol. 40 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 6 June 2017

Saad Sarhan, Christine Pasquire, Emmanuel Manu and Andrew King

The construction industry has been subject to substantial criticism for its short-term “hit-and-run” relationships which are focussed on win-lose situations. Despite the…

Abstract

Purpose

The construction industry has been subject to substantial criticism for its short-term “hit-and-run” relationships which are focussed on win-lose situations. Despite the wide recognition of these problems the industry persistently resists the radical demanded of it. Therefore, the purpose of this paper is twofold. First, to investigate why this might be the case by reviewing the governance problem confronting clients and decision makers in construction procurement, as conceptualised in transaction cost economics (TCE). Second, to critically analyse and question the efficiency and effectiveness of various safeguarding approaches, which are taken for granted and commonly practiced in construction, from a lean perspective.

Design/methodology/approach

The analysis of this paper is based on an in-depth critical review of 76 construction procurement and contractual-related articles, ranging from 1994 to 2016, using theories of Lean construction and TCE as an analytical lens.

Findings

Findings reveal that clients and decision makers often tend to safeguard their project-specific assets, against opportunism and exploitation, through the deployment of formal contractual arrangements and governance structures. These arrangements and structures typically dominate the management of the project delivery often to the detriment of the project itself; but because there is a belief that interests are safeguarded, clients and decision makers feel they have taken the best course of action. This goes a long way to explaining the coherence of the current construction model.

Research limitations/implications

To the best of the authors’ knowledge, this paper is the first to demonstrate the usefulness of using principles of Lean construction in association with TCE when analysing construction-procurement-related issues. In particular, the use of a “lean” lens helps to expose the impact of procurement governance arrangements on process flow. The study also provides a potential research agenda that can lead to the development of prescriptive conceptual frameworks for causal analysis of institutionalised waste in construction.

Practical implications

The paper attempts to expose to clients and decision makers the amount of waste (and unnecessary cost) they embed by adhering to prevailing unfit-for-purpose contractual governance approaches. It also helps decision makers to consider alternative procurement arrangements and organisational techniques that could be of value and support collaborative ways of working.

Originality/value

The study contributes to the overall understanding of waste in construction by providing insight into various imperfect procurement and contractual arrangements, which are taken for granted and impede efficiency and improvement efforts in construction. The findings presented provide a theoretical anchor and rationale for developing alternative approaches to the design and delivery of capital projects.

Details

International Journal of Managing Projects in Business, vol. 10 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 1 October 2006

Jane Watters, Fiona Jackson and Iain Russell

Improved exploitation of Scotland's intellectual assets (IA) has been identified as a critical means of improving the economic wellbeing of the nation. Earlier research…

1090

Abstract

Purpose

Improved exploitation of Scotland's intellectual assets (IA) has been identified as a critical means of improving the economic wellbeing of the nation. Earlier research highlighted a general lack of awareness of IA amongst all types of organisations in Scotland. The Intellectual Assets Centre coordinated the Scottish devolved government and European Union (EU) funded Innovative Actions projects designed to help small and medium‐sized enterprises (SMEs) from all industry sectors to start to address IA management issues. The purpose of this paper is to describe the activities implemented by the Intellectual Assets Centre.

Design/methodology/approach

A review of IA capture and development comparing IA activities in the EU and a survey of how 450 Scottish organisations (all SMEs) currently capture their IA was conducted. An IA capturing tool, the feasibility of a novel IA benchmarking tool and a toolkit to assist know‐how capture were developed. These were piloted with SMEs from various industries.

Findings

Simple tools were developed which proved to be very useful aids to facilitate improved learning and understanding of IA management issues for the SMEs involved in pilot testing.

Research limitations/implications

Although tools were web‐enabled, more value was seen to be gained when used with an advisor knowledgeable about IA management issues, especially when using the IA Capture Tool and Know‐how capture toolkit.

Practical implications

These new tools have been designed specifically for smaller businesses (SMEs).

Originality/value

This work has addressed an identified need for simple means to help smaller businesses to take their first steps in managing their intellectual assets, and as a result a series of tools have been developed.

Details

Journal of Intellectual Capital, vol. 7 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 10 May 2019

Hamid Abdirad and Carrie S. Dossick

The purpose of this paper is to inquire into the reasons why Construction Operation Building Information Exchange (COBie) has not become mainstream across the construction…

Abstract

Purpose

The purpose of this paper is to inquire into the reasons why Construction Operation Building Information Exchange (COBie) has not become mainstream across the construction industry despite the significant attempts to promote it.

Design/methodology/approach

This paper framed and compared the normative model of COBie to a descriptive model of COBie. The normative model was based on the assumptions and planned procedures outlined in the COBie documentation. The descriptive model was developed through a case study of COBie implementation, with ethnographic observations, interviews and artifact analysis as the data collection methods and thematic analysis as the data analysis method.

Findings

The comparative analysis of the normative and descriptive models showed that the underlying normative assumptions of COBie can be challenged in its implementation. In the case study, implementing COBie disrupted the conventional practice of few participating firms as the data requirements and the expected sequences and timelines of tasks were not aligned with the industry norms for exchanging data. Furthermore, the normative model of COBie could not account for the unanticipated variability in the internal routines of firms for submittal production.

Practical implications

COBie, as an instruction-based model, may not provide enough flexibility for some firms to adapt to its requirements such that COBie tasks become integrated with their existing workflows. COBie tasks may become additional efforts, and at times, conflict with the industry norms and firms’ routines, and therefore, disrupt the efficiency goals.

Originality/value

This paper provides empirical evidence to clarify why implementing COBie has not been as efficient for all industry players as expected.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 8
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 9 November 2020

Seyedhabibollah Sadrinooshabadi, Afshin Taheri, Ibrahim Yitmen and Rogier Jongeling

Each building project demands an integrated method for information and requirement management in its life cycle. The main purpose of this paper is to explore the major…

Abstract

Purpose

Each building project demands an integrated method for information and requirement management in its life cycle. The main purpose of this paper is to explore the major obstacles in integrated life cycle information management and recognize the potentials of CoClass as the new Swedish digital classification system to tackle them throughout asset life cycle.

Design/methodology/approach

The industry viewpoint toward the current status of asset information management considering ISO 19650-1 principles and the existing obstacles and the industry practitioners' ideas regarding CoClass capabilities and applicability were captured and analyzed. A total of 13 semistructured interviews were conducted with the AECO industry professionals to have an understanding of information requirement management. Then the results were analyzed qualitatively, using the NVivo 12 software. Different attributes of a component (heating panel) in a meeting room according to CoClass and data deviations throughout the asset life cycle were elaborated.

Findings

This study reveals some obstacles in information management process in seven categories in relation to: (1) the need to employ information exchange platforms as common data environments (CDEs) by all actors from early stages; (2) the communication issues caused by lack of utilizing common languages; (3) the costly and time-consuming implementation process; (4) the misunderstandings in terms of data communication between service providers and owners; (5) the definition and fulfillment of information requirements as well as keeping track of data deviations throughout asset life cycle; (6) the information update difficulty; and (7) the need for training practitioners dealing with new systems such as CoClass.

Originality/value

The research explores the major obstacles in information requirement management concerning the practical implementation of the new Swedish classification system, CoClass, supporting the asset life cycle.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 5 January 2021

Mauro Sciarelli, Silvia Cosimato, Giovanni Landi and Francesca Iandolo

Recently, socially and responsible investments (SRI) have constantly grown becoming a highly discussed issue. Therefore, the main purpose of this paper is to better…

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Abstract

Purpose

Recently, socially and responsible investments (SRI) have constantly grown becoming a highly discussed issue. Therefore, the main purpose of this paper is to better understand if environmental social governance (ESG) criteria integration in investment strategies can support the transition of finance toward a more sustainable growth.

Design/methodology/approach

An explorative analysis based on a multiple case study has been conducted and addressed by a content analysis on the Key Investors Information Documents (KIIDs) that the sample companies published for 2020.

Findings

The achieved results demonstrated that the case companies differently integrated ESG into their SRI; thus, if some of them are quite near to a full integration, the others demonstrated less than a full commitment with ESG. This seems to be mainly due to the different approach that asset management companies (AMCs) and/or managers have adopted for integrating ESG criteria.

Research limitations/implications

Even though the achieved results offered some interesting insights for asset managers, the explorative and qualitative nature of this study and the small sample investigated somewhat limits it.

Practical implications

AMCs, consultants and managers in developing and implementing their SRI strategy could be much more focused on the importance of ESG integration for the transition toward a more responsible and sustainable finance (micro-level) as well as a more sustainable development (macro-level).

Originality/value

The paper provides new insights into the essence of SRI strategies and their potential to contribute to sustainable development. Thus, it tries to shed new lights on the role that ESG can have to stimulate and support investment decisions and, in so doing, contributing to make finance grow more sustainable.

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