Purpose

This study provides an extensive risk assessment framework for nonlisted real estate funds' (NREFs) portfolio management in India across their life cycle; that is, the investment stage, the monitoring stage and the exit stage in an emerging market context. The study of risk across these three stages is a new addition to the literature and assumes importance in the context of real estate portfolio management for NREFs in the emerging markets (e.g. India), which are predominantly an opportunistic investment play.

Design/methodology/approach

The risk assessment framework is built on the multiactor/multicriteria risk priorities, using analytical hierarchy process (AHP), obtained from 35 experts in four real estate fund management professional groups; namely, investors/fund managers, valuers, consultants and international developers.

Findings

The results demonstrate that the real estate portfolio management risk priorities change across the three life cycle stages of the fund. At the investment stage, specific risks are most critical; at the monitoring stage, it is important to concentrate on all three risks – specific, systematic and management risks; and at the exit stage, systematic risk plays a crucial role. Real estate portfolio management risk evaluation at the subfactor level shows that investee/partner and location selection needs to be critically evaluated at the time of the investment; project execution and quality of development must be monitored during the construction/monitoring period; and repatriation of the funds, currency volatility and exit risk (resale) are critical at the exit stage of the fund.

Practical implications

The understanding of the real estate portfolio management risk transformation across the life cycle stages is crucial for NREF managers for risk minimization, transfer and mitigation strategy formulation in their real estate portfolios. Unlike previous research that evaluates investment risk, this study breaks the NREF's risks into the investment, monitoring and exit stages. The key risk factors for each stage depend on the NREF's real estate activities for that stage. These activities, in turn, give rise to a typical risk profile for that stage. The findings are crucial for the various stakeholders of real estate fund management and policymakers in an emerging market context; particularly India, one of the fastest growing major economies in the world.

Originality/value

This risk assessment framework for simultaneously assessing risk across the three life cycle stages of NREFs is a new addition to the literature.

中文翻译：

---

印度非上市房地产基金的房地产投资组合管理风险评估框架

目的

这项研究为印度非上市房地产基金（NREFs）整个生命周期内的投资组合管理提供了广泛的风险评估框架；即新兴市场环境下的投资阶段，监控阶段和退出阶段。对这三个阶段的风险的研究是文献中的新增内容，并且在新兴市场（例如印度）的NREF房地产投资组合管理的背景下具有重要意义，而新兴市场（主要是机会性投资）在这种情况下对NREF进行了风险管理。

设计/方法/方法

风险评估框架是建立在多主体/多准则风险优先级的基础上，并使用层次分析法（AHP）从四个房地产基金管理专业组的35名专家那里获得的；即投资者/基金经理，估值师，顾问和国际开发商。

发现

结果表明，房地产投资组合管理的风险优先级在基金的三个生命周期阶段均发生了变化。在投资阶段，特定风险至关重要。在监控阶段，重要的是集中于所有三个风险–特定，系统和管理风险；在退出阶段，系统性风险起着至关重要的作用。在子要素级别的房地产投资组合管理风险评估表明，在投资时需要严格评估被投资方/合作伙伴和位置选择；在施工/监测期间，必须对项目的执行和开发质量进行监测；在基金退出阶段，资金的汇回，货币波动和退出风险（转售）至关重要。

实际影响

对于NREF经理在其房地产投资组合中制定风险最小化，转移和缓解策略的方法，了解房地产投资组合管理在整个生命周期阶段的风险转化至关重要。与以前的评估投资风险的研究不同，本研究将NREF的风险分为投资，监控和退出阶段。每个阶段的主要风险因素取决于该阶段NREF的房地产活动。这些活动反过来会引起该阶段的典型风险状况。在新兴市场环境下，这些发现对于房地产基金管理和政策制定者的各个利益相关者至关重要；特别是印度，它是世界上增长最快的主要经济体之一。

创意/价值

用于同时评估NREF的三个生命周期阶段的风险的这种风险评估框架是文献的新增内容。