Chairman's View
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Investment IPF Property Forum forumforum THE MAGAZINE OF THE INVESTMENT PROPERTY FORUM ISSUE 10 JUNE 2003 viewview Chairman’s view As my year as Chairman of the IPF draws to a close, I I should stress that the would like reflect on the work which has been IPF does not consider undertaken by the Executive team and the itself to be a lobbying Management Board. In this role, I have assisted the organisation but rather a Board in the strategic development of the Forum and thought-leader able to also seen come to fruition a number initiatives give an impartial cross- introduced by previous chairmen, most recently Rob industry perspective. We Bould, Martin Moore and Rupert Clarke. are keen to co-ordinate our work with other Much of the focus for this year has been the leading industry bodies development of the research strategy and the vision such as the BPF (with for the IPF. whom we have kept in Many meetings have taken place developing the touch with on the research strategy and I would like to thank my Treasury briefing) and colleagues at the IPF Educational Trust for their input the RICS. and also the Chairman of the IPF Research Another development Committee, John Gellatly, and our President Alastair which you will have noticed being gradually Ross Goobey for his guidance. Our aim is to provide introduced is the new IPF corporate identity. The the industry with a rolling programme of independent In this Issue rationale behind the logo is that it reflects the forward research to improve the functioning and efficiency of thinking approach which the IPF takes to its activities. 2 IPF launches the property investment market. If the IPF can prove Research Programme The retention of our crimson livery is intended to itself as the main fulcrum for research in the UK real evoke the qualities of seniority, prestige and respect 4 Vision for the Future estate industry, then we will have made a significant long associated with the Forum. practical contribution to enabling the industry to 6 CPD Review speak with “One Voice”. I hope that as members you feel proud to be part of the 8 New Academic IPF. As Chairman, I have had an insight into how hard Faculty for the AEP The Forum has identified and agreed a number of key our Executive team of just five staff work to ensure that themes for 2003 which will be explored through both 9 New Advanced you get the best service possible. In addition, our education and research. Both aspects are covered in Property Applied achievements are due to the valuable contribution made greater detail later in this issue of Forum View. Spreadsheets & by the Management Board and the various committee Systems Workshop A recent achievement for the IPF was to be invited by members who put so much into making the Forum the 9 IPF launches IFA the Treasury, along with colleagues from the RICS and success it is. Please continue to support the Forum and Education Initiative BPF, to present our views on the outlook for the if you would like to play a more active role in the 10 Survey of property investment market. Many issues were Forum’s activities, please contact the Executive as Independent discussed in the presentation, which is available to they are always looking for willing volunteers. Forecasts UK Property members on the IPF website. Most important, we June marks my hand over to Ian Marcus. I am sure he Investment outlined the case for the establishment of a will derive as much satisfaction from his work as 14 Forum Activities securitised tax-transparent property vehicle and felt Chairman as I have. I wish him well. the Treasury officials were receptive and interested. 15 People The Treasury also highlighted a number of key 16 Property Investment research topics of interest to them. We plan to Steven Fogel Exchange launches incorporate these into our research programme. Chairman 2002–2003 Propex Professional IPF launches Research Programme: An important step forward for the Forum Enhancing the functioning and efficiency of the Moreover, high-level discussions have taken place property investment market is a principal objective of with representatives of other leading industry bodies the IPF and research is one of the key tenets of the including the British Property Federation, the RICS, Forum. Following considerable work behind the the British Council for Offices and the British Council scenes, the IPF has now secured cross-industry of Shopping Centres. All of these organisations are support to press ahead with a substantial supportive of the aims and objectives of the IPF/IPF ET independent research programme. Joint Research Programme. In due course, this support may well be translated into joint funding for Over the years, the IPF has published research reports suitable research projects, which should avoid any covering a range of issues – securitisation; valuation potential overlap. behaviour; indirect investment vehicles and most recently, portfolio risk management. But despite these Over the next three years, achievements, the research activities of the IPF have the IPF plans to deliver a Key themes and topic areas not kept pace with the highly successful education high quality series of and events programmes. research initiatives as part of Vehicles & this new Programme. Some Recognising the need for a step change in activity, Instruments projects will be longer term the IPF Board commissioned a review, which saw the Ltd Partnerships in nature, while others will development of a strategy and associated business address more immediate Derivatives plan. The IPF's vision of establishing a substantial industry issues. The broad Securitisation independent research programme struck a chord with priorities for the Research CMBS the IPF Educational Trust (IPF ET), which amongst Programme have been set other charitable objectives, is empowered to through consultation with promote and disseminate research. A joint research the wider membership. A Market Structure initiative resulted. survey of the research Legal issues As a sign of the importance attached to this joint priorities has also recently Improve Tax issues initiative, both the Forum and the Trust each been conducted. Functioning & Liquidity committed £75,000 from their reserves to seed fund The structure and direction Efficiency the three-year development phase. However, this sum of the Research Programme was insufficient to deliver a credible, mainstream is summarised in the Investment programme of research, and so the IPF looked to the accompanying diagram. The Management support of key organisations from the membership Programme looks to address Risk Management and the wider industry. This support has been the key objective of the Valuation forthcoming, and fifteen leading businesses have Forum (“Functioning and committed funds to the IPF/IPF ET Joint Research Behavourial Finance Efficiency”) in a structured Programme (see below). Governance way ensuring that topics are Urban Regeneration covered, which meet the Research Programme Funders: needs of all groups within Capital & Regional the diverse membership. Regular Surveys Grosvenor Ideas for future projects GVA Grimley under these key themes and Investment Property Databank topics will be 'harvested' by the IPF Research Steering KPMG Group from an Advisory Panel, the IPF membership LaSalle Investment Management and the wider industry. Membership of the Advisory Land Securities Panel will comprise representatives from the funding Lovells organisations as well as individual members. The idea Morley Fund Management is to draw in the different perspectives of the various Nabarro Nathanson professional communities represented. Prudential Property Investment Managers Quintain Estates & Development It should be noted that all potential research projects Scottish Widows Investment Partnership promoted to the IPF would need to address this SJ Berwin structure and satisfy a range of information Strutt & Parker requirements. Further details can be found on the IPF website. 2 The Research Steering Group have begun to work up a • As the first research project in a series, this study series of projects, which will form the basis of the first will investigate possible methods of measuring year of the Research Programme. In each case, detailed liquidity in direct property and begin to evaluate and consideration is being given to the practical application explain the liquidity of UK direct property by of outputs and mechanisms for communicating findings marshalling the available evidence on turnover. effectively. These projects include: • A new quarterly Transaction Report to provide the • A study of securitised property markets, which will most comprehensive and current data for the UK review what actually happens when a tax-transparent property investment market. REIT-like market develops and use that information to Article provided by With the structures and necessary finances now in Stephen Palmer, model what would happen if such vehicles were to be place, the IPF/IPF ET Joint Research Programme will Seven Dials permitted in the UK. develop rapidly. You will be kept abreast of progress Consulting and IPF through these pages and monthly email updates. Research Consultant Investment Research Director IPF Property Forum £40–48,000 (full time), plus benefits, depending upon experience. JOIN THE TEAM DEDICATED TO REALISING THE IPF'S VISION OF ENHANCING THE KNOWLEDGE, UNDERSTANDING AND EFFICIENCY OF PROPERTY AS AN INVESTMENT. An exciting and challenging opportunity to become the focal point of a substantial independent research programme. Based in our offices in Central London, you will: • Play a leading role in shaping and delivering a major ongoing research programme with project expenditure in excess of £150,000 annually; • Work alongside some of the leading research and investment professionals active in property and related fields; and • Develop expertise across a full range of property-related issues. Reporting to the Executive Director of the IPF, you will be a team player and confident “doer”.