Real Estate Investment: Future Regulatory Landscape

Real Estate Investment: Future Regulatory Landscape ARGUS° SOFTWARE An Altus Group company 2012 2013 2014 2015 2016 2017 the deliver 6,750 €1.4| ADS sai ds ana European Market Infrastructure Regulations (EMIR) AIM: to reduce systemic risk of derivatives & new reporting obligations IMPLICATIONS: could require real estate funds to rapidly alter their 6,500 profi anou 6,2. Changes to Lease Accounting AIM: remove distinction between operating 6,00 and finance leases and all leases will be day е г hr reflected on the lessee's balance sheet gearing strategies IMPLICATIONS: affect real estate decisions and the availability of stock Alternative Investment Fund Manager Directive (AIFMD) AIM: consistent standards, improve stability, deliver better protection and choice for Solvency II (SII) AIM: increase consumer protection through risk-based approach to capital investors IMPLICATIONS: measures are still under Alternative Investment Fund development, and these will define the impact of AIFMD on real estate IMPLICATIONS: proposed standalone capital charges for direct real estate as well as development activity to reduce risk. Manager Directive (AIFMD) Review of regulations Basel III AIM: reduce the probability and severity of future financial crises. IMPLICATIONS: increase in lending costs and less bank lending to real estate. Likely implementation over 10 years With the focus on implementing new regulations and the overall drive for transparency in the real estate sector, comp ies need to be responsive to cha Managing a diverse real estate portfolio requires solutions that are agile and responsive to new regulatory requirements and offer a complete audit trail. ARGUS Solutions allow your business to operate in a consistent, transparent and efficient way. argussoftware.com [email protected] Source: AVIVA Investors. Note: dates are approximate, as of July 2012. Real Estate Investment: Future Regulatory Landscape ARGUS° SOFTWARE An Altus Group company 2012 2013 2014 2015 2016 2017 the deliver 6,750 €1.4| ADS sai ds ana European Market Infrastructure Regulations (EMIR) AIM: to reduce systemic risk of derivatives & new reporting obligations IMPLICATIONS: could require real estate funds to rapidly alter their 6,500 profi anou 6,2. Changes to Lease Accounting AIM: remove distinction between operating 6,00 and finance leases and all leases will be day е г hr reflected on the lessee's balance sheet gearing strategies IMPLICATIONS: affect real estate decisions and the availability of stock Alternative Investment Fund Manager Directive (AIFMD) AIM: consistent standards, improve stability, deliver better protection and choice for Solvency II (SII) AIM: increase consumer protection through risk-based approach to capital investors IMPLICATIONS: measures are still under Alternative Investment Fund development, and these will define the impact of AIFMD on real estate IMPLICATIONS: proposed standalone capital charges for direct real estate as well as development activity to reduce risk. Manager Directive (AIFMD) Review of regulations Basel III AIM: reduce the probability and severity of future financial crises. IMPLICATIONS: increase in lending costs and less bank lending to real estate. Likely implementation over 10 years With the focus on implementing new regulations and the overall drive for transparency in the real estate sector, comp ies need to be responsive to cha Managing a diverse real estate portfolio requires solutions that are agile and responsive to new regulatory requirements and offer a complete audit trail. ARGUS Solutions allow your business to operate in a consistent, transparent and efficient way. argussoftware.com [email protected] Source: AVIVA Investors. Note: dates are approximate, as of July 2012.