Luxembourg Official Top150

6.6%

inflation forecast for 2022 and 5.3% for 2023

5367.849bn€

net assets under management in Luxembourg funds in May 2022

20.1%

increase in interest margin of credit institutions in the first quarter of 2022 compared to the same period in 2021

+ 3.4%

domestic employment over a year

All the news that’s fit to browse - October 2022

Tamas Mark MRICS (IQ-EQ): The funds’ gate-keeper

„Our position in the center of the fund-admin ecosystem is putting data at the center of IQ-EQ’s model” says Tamas Mark, Head of Real Estate. In the interview, he shared with us the new challenges that real estate funds face after the pandemic, how IQ-EQ is adapting, and how he sees the future of the industry.

 

What are the main trends in real estate at the moment?

For the moment, we see a dry powder on the market. So, when an asset comes to the market, investors are very keen to allocate their capital in it. We also note that despite the pandemic, real estate remains globally expensive. Although yields are low, investors continue to invest in the sector. Furthermore, ESG is the major trend today: Asset managers expect investors to allocate more assets in ESG, so the demand for green vehicles is high. ESG funds generate high returns today and investors expect even higher ROI over the 5-6 years to come. Covid-19 has accelerated these trends. Never the less, the very high carbon footprints of buildings – in terms of construction and energy consumption – have become an issue. As a result, regulators are now implementing new rules requiring more environmentally compliant investments.

ESG and digitization trends are here to stay – Tamas Mark

How is IQ-EQ adapting to this evolution?

IQ-EQ helps asset managers to set up their fund, to attract investors, to raise the requested capital, to structure the fund and the special purpose vehicles, to hold the assets, and so on. We also provide services such as accounting and regulatory reporting, so that the asset managers and investors can really focus on their core business, while we manage their vehicle. However, the new trends and regulatory changes require new skill-sets. We act as gate-keepers for our clients, so our duty is to remain up-to-date and to help them tackling all these challenges. Our position in the center of the fund-admin ecosystem, in touch with all the actors in the market, is putting data at the center of IQ-EQ’s model. Our IT solutions include dashboards and live data, so that our clients get fully informed 24/7 on their assets’ performance and can take the best investment decision.

 

How do you see these asset classes evolving in the future?

Large family offices and corporate structures continue investing in real estate. So, the demand for funds businesses and vehicles is booming. Buildings that were launched decades ago, are unattractive for investors, because they require very complex and expensive refurbishment to be ESG-compliant. Those will struggle to find buyers. Furthermore, the retail industry is not in a good shape either, due to the pandemic. Although some shopping malls and small retails show creativity to attract clients and boost their business, there is still a long way ahead until this asset class fully reinvents itself. Finally, ESG and digitization trends are here to stay. As they evolve very fast, we have to constantly set-up new solutions. This also means investing more, in order to remain in line with these trends and to provide our clients with the best solutions they need.