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 requested by emailing RE:UK using [email protected]. The recommendations in the Consultation regarding pricing mechanisms were implemented as guidelines in May 2021.
In 2025, the Corporate Governance Committee reviewed the Guidelines document and this is now the latest version.
For further information, please email us: [email protected].