Open End Vehicle Pricing Guidance

22 May 2025

Download Guidance on AREF's Open End Vehicle Pricing

Last updated March 2025

Background

The Open End Fund Pricing Project was an industry-wide project conducted in collaboration with INREV.

The first phase was completed in July 2018. Its key purpose was to promote a better understanding of the effectiveness of the two principal types of pricing mechanisms commonly in use, through quantitative analysis, and whether their methods of calculation result in different outcomes for investors. It concluded that both commonly used pricing models, (classic dual and Cap & Am), are effective in minimising investor dilution but did not produce identical outcomes for investors.

In 2020, AREF and INREV launched the Open End Fund Pricing Consultation Paper representing the second phase of the project, offering insights into the complexities around the pricing of institutional open end real estate funds. The paper and supporting materials can be downloaded below.

The recommendations in the Consultation regarding pricing mechanisms were implemented as guidelines in May 2021, which can be downloaded below. On 6 May 2021 AREF held a members discussion on the guidelines, a link to this can be found under Guidelines below. Further recommendations in the Consultation, regarding governance matters, were considered by the AREF Corporate Governance Committee and added to the Guidelines in September 2022.

In 2025, the Corporate Governance Committee reviewed the Guidelines document and this is now the latest version.

Documents to Download:

For further information, please email us: [email protected].

Return to listing

Open End Vehicle Pricing Guidance

Documents to Download:

Guidelines

Phase 2 Consultation

Phase 1 Consultation

Initial Consultation

Tags