Real-Estate Funds Risk Management

Real estate funds face a number of challenges, which by nature are very different to those faced by UCITS and other funds investing in traditional markets. More specifically, liquidity risk is one of the key areas that need to be managed within such funds.

Main Features

Real-Estate Risk Drivers

To this effect, RiskValue incorporates an extensive liquidity forecasting framework spanning over multi-year horizons using existing detailed Lease, Financing, and Collateral agreements combined with real estate risk driver such as:

  • Inflation rates
  • Renewal rates
  • Absorption periods
  • Default rates
  • Rent indices
  • Property value indices
  • Maintenance costs
  • Energy costs
  • Income, Property value, and other taxes


Stress scenarios can be derived using all of the above and other real estate risk drivers in order to obtain a detailed liquidity profile of the fund at future periods for the baseline and different stress scenarios under consideration. Various analytics including liquidity coverage, loan-to-value and other ratios are presented in comprehensive reports.