2010AWARDS & AnnuAL REVIEW - PERE

PERE FORuM | FRAnKFuRT
Mark Newman
(L to R) Laurent Luccioni, Will Rowson, Ralph Winter
(L to R) Baerbel Schomberg and Michael Morgenroth
Brothers in arms
inrev’s chairman issued a battle cry to Forum
attendees over solvency ii
Michael Morgenroth, chairman of the European Association for Investors in
Non-listed Real Estate Vehicles, demanded action against Europe´s Solvency II
regulations during PERE’s first-ever forum in Frankfurt. Making his plea from
the stage, he said the incoming European regulations would limit insurance companies
– and potentially pension funds – from making investments in real estate.
“Insurance companies and pension funds will be reluctant to invest in real
estate next year because of the uncertainty,” Morgenroth warned, noting that all
real estate in any European location would attract a 25 percent capital charge.
The points he made stunned some delegates who were unaware of the potential
impact the new rules could have, particularly on opportunity funds.
In addition, Morgenroth told delegates how BaFin, the German financial supervisory
authority, had introduced fresh draft rules that would place further
restrictions on real estate investing.
Because many of these rules may end up affecting the industry as a whole, Morgenroth
believes they need to be fought by the industry as a whole. “The industry
has to lobby on the European level and fight on the national level,” he said.
Steve Felix (L to R) Jeroen Winkelman and Fredrik Elwing