Research

Investor Toolkit

Transparency, disclosure, governance, and other non-financial terms are important issues to both investors and managers contemplating an investment in a real estate partnership. In an effort to assist institutional investors to foster relationships with prospective real estate managers, the Institutional Investor Council has compiled the Investor Toolkit and has unanimously approved it for general distribution. The Toolkit is intended to be used as a reference in underwriting and documenting commingled fund and joint venture investments as well as providing a helpful perspective on key provisions such as governance, transparency and disclosure, fiduciary obligations, and alignment of interests. It consists of updated versions of two pre-existing PREA documents, the Model Provisions and the Due Diligence Guidelines, along with a new tool, a user-friendly checklist of preferred LPA terms. There are also four informative appendices. Feel free to use the Toolkit internally and to share it with professional colleagues in both the GP and LP communities.

The Institutional Investor Council intends for the Toolkit to serve as a working document, and we welcome further input.  Specifically, we plan to solicit formal investor feedback during January and February of each year prior to our meeting at the PREA Spring Conference.  However, we are open to your thoughts and suggestions at anytime.  Please email comments to investortoolkit@prea.org.

Investor Toolkit COMPLETE (Version 3 - March 2013)

Section 1 - Due Diligence Guidelines for Review of Prospective Managers
Section 2 - Checklist of Preferred Limited Partnership Agreement Terms
Section 3 - Model Provisions for Real Estate Partnerships
Appendix 1 - ILPA Private Equity Principles - Version 2.0 - January 2011
Appendix 2 - A Principled Approach to Commingled Fund Documentation 
Appendix 3 - Sample Investment Process
Appendix 4 - REIS Standards Checklists