When we look at the current real estate landscape, the COVID-19 pandemic has set forth trends impacting the industry’s primary investment sectors – for example, increasing move to the use of e-commerce and downward trend in retail, and the necessitated rise in remote working, which will continue to create volatility in vacancy and capitalization rates in the office sector. A recent study by PwC1 indicates real estate debt may be a popular strategy for investors to fill a potential lending void created by traditional banks as credit standards tighten.
In the wake of the pandemic, investment managers may revisit the topic of outsourcing. Prior to the pandemic, real estate investment managers had low confidence in the quality of work being produced by outsourced providers. According to a 2018 KPMG outsourcing survey2, when asked about the challenges faced while outsourcing, 29% of real estate investment professionals surveyed said they saw a decline in the quality of services delivered versus in-house delivery, while 33% reported a lack of administrator flexibility (unable to support ad hoc requests).
MUFG Investor Services Offering
With an enhanced scope of services from property oversight, to accounting, reporting, and analytics, at all levels of a fund investment structure, MUFG Investor Services has the capability to service the full value chain within a real estate fund structure. Highly experienced service teams, equipped with full knowledge of the real estate industry and proven understanding of its technology, are available in the same service region.
MUFG Investor Services has been at the forefront of the increasing demand for outsourcing, gaining our client’s confidence by developing a unique offering with their specific needs in mind. Partnering with a leading administration service provider allows our clients access to draw on global resources and industry knowledge, a diversified product suite, and time zone advantages as they deliver value to their investors.
Technology and Integration
In combination with the market leading Yardi (equity) and Sentry (debt) applications, our proprietary modelling and scenario analysis tool and latest client portal technology provide a cutting-edge self-service experience for both managers and their investors.
With a single platform for equity, debt, and hybrid strategies, positions are sourced from the same platform and related reporting, in accordance with PREA3 (USA), INREV4 (Europe), and ANREV5 (APAC) standards, is made available via our client portal. By offering genuine integration between accounting, modelling, payment and portal applications, we provide clients with straight-through-processing and ultimate transparency.
Bringing the Bank
As the asset servicing arm of one of the world’s largest banks6, we have global relationships with many of the largest fund managers. As well as offering investor services solutions we offer comprehensive banking, debt and FX services through our fully licensed Cayman Bank7 and affiliates, including subscription lines of credit.
1 PwC Emerging Trends in Real Estate® The Global Outlook 2018
2 KPMG Real Estate Fund Administration 2.0 Insights from the 2018 outsourcing survey
3 Pension Real Estate Association
4 European Association for Investors and Non-Listed Real Estate Vehicles
5 Asian Association for Investors and Non-Listed Real Estate Vehicles
6 Mitsubishi UFJ Financial Group (MUFG), with more than US$3.2 trillion in assets.
7 MUFG Alternative Fund Services (Cayman) Limited, a Category “A” Bank licensed in the Cayman Islands by the Cayman Islands Monetary Authority