Agefi Luxembourg - octobre 2025

AGEFI Luxembourg 32 Octobre 2025 Immobilier By Quentin GILLOIS, Director, Arendt Investor Services & Rodrigo DELCOURT, Partner, Arendt &Medernach A s valuation disparities deepen across European real estate markets, continuation funds are emerging as a pivotal liquidity mecha- nism. Their credibility, however, hinges on the thoroughness with which investor services are structured, governed, and delivered. At Arendt, we ob- serve that seamless fund ad- ministration, depositary oversight, transfer agency, corporate secretarial, valua- tion governance, and trans- parent reporting form the backbone of any successful GP- led continuation transaction. In a typical continuation transaction, the general partner (GP) proposes transferring one or more assets from a selling fund into a continuation ve- hicle, allowing existing limited partners (LPs) to choose whether to cash out, roll, or blend both options. This dual role—acting as both seller and buyer—inevitably introduces conflicts, which must be proactively managed through robust processes, clear documentation, and in- dependent oversight. Investor services teams provide the neutral structure that certifies net asset value (NAV) quality, evidences valuation independence, operates election mechanics, and maintains transparent, standards-aligned re- porting. In our experience, these disciplines con- vert perceived conflicts into demonstrable fairness, especially when valuations are already under scrutiny. Governance architecture is central to credibility. Early Limited Partner Advisory Committee (LPAC) engagement and clear conflict-manage- ment protocols are essential. The Institutional Limited PartnersAssociation (ILPA) recommends addressing conflicts, managing recusals, and re- viewing disclosure packages and process fairness. Practically, this means early briefings, disclosure of alternatives considered, and a documented ra- tionale focused on maximizing value for all LPs, not solely for those electing liquidity. Independent fairness or valuation opinions now form a best-practice standard. Even though the U.S. SEC’s 2023 private-fund adviser reforms were vacated in June 2024, the regulatory signal is clear: adviser-led secondaries require indepen- dent price checks and transparent relationships with opinion providers. Many sponsors circulate such opinions with the election pack, alongside relationship disclosures, a good-governance habit that investor services teams should operationalize as standard practice. Valuation governance becomes especially critical when dealing with assets subject to uneven price discovery—such as office buildings or niche retail properties. The updated INREV Property Valua- tion module (effective January 2024) provides a comprehensive framework for roles, responsibili- ties, and transparency that complements the INREV NAV and Reporting modules. Aligning policies to these standards ensures consistency in presenting economic NAV and reconciling it from IFRS, while also incorporating sustainability fac- tors that can materially influence value. At the asset level, valuations should comply with RICSValuation –Global Standards (RedBook) and IVS 2025, emphasizing data quality, documenta- tion, model governance, andESG. Investor services teamsmust confirmvaluer instructions, frequency, qualifications, and scope alignment across single- and multi-asset perimeters. Harmonizing IFRS 13 fair value principles with industry frameworks such as INREV NAV allows LPs and auditors to triangulate numbers across three angles, providing robust evidence even in thinly traded markets. Operational design must reflect this complexity. Continuation transactions stress every ledger. Dedicated project tracking for rolled interests, new secondary capital, and any stapled commit- ments is essential. Equalisation rules must mirror the LPA, capturing fee holidays or preferred-re- turn resets and preventing performance cross- contamination between legacy and continuation cohorts. Depositaries under AIFMD verify valuation policy implementation and oversee cash monitoring, owner- ship verification, and safekeeping. Clear sequencing of transfer-agency elections, lender consents, and hedge novations ensures orderly execution. Two-factor authentication and ver- sion-controlled data extracts help prevent misallocations dur- ing investor elections under deadline pressure. Economics and reporting further underpin trust. Investor services teams should model carry re- sets, accrual releases, and fee waivers for rolling investors, with full alignment to ILPA guid- ance on transaction-cost allocation between selling fund, continuation vehicle, and exiting investors. Transparent depiction of water- fall mechanics, along with INREV NAV bridges from IFRS, including transfer-tax assumptions, expense amortization, and deferred-tax treat- ments, allows investors to understand how valu- ation gaps have been measured and normalized. Clarity on embedded below-market financing or cost adjustments is equally critical. Data quality, technology, and model governance anchor valuation credibility. IVS 2025 and the RICS Red Book stress valuation-model registers, independent formula checks, change-control logs, and clear data lineage from property-manager systems to appraisal files and NAV. Where ESG metrics influence valuations, sources and methodologies should be disclosed in line with INREV reporting modules. Under IFRS 13, fair value disclosures for Level 3 inputs, including cap rates, ERVs, voids, and discount rates, require ro- bust support and sensitivity tables, enabling au- ditors and LPs to interrogate assumptions without re-engineering the NAV. In our view, this discipline turns valuation subjectivity into verifi- able process, a key defense when valuation gaps invite scrutiny. Adisciplined executionplaybook transforms com- plex continuation processes into predictable oper- ations. Early in the project, both the GP and fund administrator analyse the strategic options andde- fine valuation scope, appraisal terms and candi- date opinion providers. Confirmation that the AIFMDvaluation policy and depositary oversight framework can accommodate the transaction pre- vents procedural rework later. During the go/no- go phase, investor services teams coordinate preparation of investor packages, including histor- ical performance data, proposed price-setting methodology, conflict disclosures, fee and water- fall redlines, structural diagrams, and updated INREV reporting bridges. Once LPAC reviewand launch begin, transparency is paramount. Secure election tools, daily reconciliations, and pre-tested equalization and waterfall logic keep operational risk in check. LP queries are effi- ciently resolved because documentation is com- plete and internally reconciled. At closing, asset transfers are executed, consideration settled, ac- counting journals posted, Annex IV reports up- dated, and the first continuation-vehicle reporting pack issued. Lessons learned are recorded in the governance log, converting a one-off transaction into a repeatable capability. Common pitfalls, inconsistent valuation perime- ters, unclear treatment of fees and expenses, weak election controls, and oversight delays, can un- dermine pricing integrity. Reconciling asset scopes early, coding fee allocations into the ad- ministration engine, enforcing two-person verifi- cation, and mapping depositary responsibilities mitigate these risks. In a valuation gap environ- ment, process reliability is synonymous with value protection. For Luxembourg-domiciled AIFs, AIFMD gov- erns valuation, delegation, depositary oversight, and transparency. Article 19 valuation policies must be consistently applied, external valuers must hold professional guarantees, and deposi- taries should be integrated early in project plan- ning. Annex IV reporting should reflect any changes in leverage or exposures from the new structure. It must also be noted that ultimately, the board of directors of the AIFM is responsible for the proper valuation of the assets and theNAV calculation of the funds managed by the AIFM. This implies that theAIFMhas to have all relevant processes and procedures in place in order to cor- roborate or, as the case may be, challenge and re- ject any valuation conclusions provided by independent appraisers. We view investor-services excellence as a strate- gic capability that transforms complexity into confidence and process into value. Ultimately, a well-run continuation fund enables every in- vestor - whether rolling or exiting -to trace how pricing was determined, how conflicts were identified, addressed and managed, and how economic NAV reconciles across accounting and industry frameworks. ILPA-aligned trans- parency, RICS/IVS-compliant valuations, and INREV-consistent reporting, delivered through disciplined investor services operations build in- vestor confidence that fairness has prevailed, even amid valuation uncertainty. Bridging the valuation gap: The strategic role of continuation funds in European real estate L e Luxembourg s’impose aujourd’hui comme l’un des hubs les plus attractifs pour la structuration de fonds d’inves- tissement immobiliers. Pourtant, derrière cette attractivité se cache une réalité à laquelle de nom- breux promoteurs de fonds sont confrontés : la mise en place et la gestion d’un back-office luxembour- geois deviennent de plus en plus complexes. De la phase de création à l’administration quoti- dienne, les sponsors doivent jongler avec une multitude d’acteurs, de régle- mentations et de contraintes opérationnelles. Cette complexité les éloigne souvent de leur véritable cœur de métier : générer de la valeur à travers la stratégie d’investissement. C’est sur ce constat que s’appuie TrustConsult Group pour proposer une réponse claire : un accompagnement intégré “ all in one ”, vérita- ble “one stop shop” au croisement de l’immo- bilier et de la structuration . Notre offre place la complémentarité entre expertise immobilière et ingénierie de fonds au cœur du dispositif, afin de préserver les intérêts du sponsor. Cette approche intégrée permet : - Une cohérence entre les besoins immobiliers et les exigences de structuration ; - Un pilotage global et maîtrisé de l’ensemble des intervenants ; - Une optimisation des coûts et une meilleure efficience opérationnelle ; - Un reporting clair et régulier donnant une vision précise des décisions à prendre. L’offre de TrustConsult Group s’articule autour de trois axes majeurs : 1. La gestion de projet centralisée , fluidifiant les processus, les communications et l’efficacité opé- rationnelle. 2. Un engagement clair sur les coûts et honoraires , garantissant transparence et prévisibilité. 3. La liberté pour le sponsor de se consacrer pleinement à son cœur de métier : la création de valeur pour ses investisseurs. Un enjeu croissant en matière de gouvernance des véhicules immobiliers Les véhicules immobiliers luxembourgeois sont soumis à des exigences de gouver- nance et de conformité de plus en plus strictes. Dans ce contexte, le recours à de véri- tables administrateurs indépen- dants est devenu essentiel pour renforcer la cré- dibilité des structures et garantir une gestion rigoureuse. TrustConsult Group propose une solution claire et pragmatique : - La nomination et l’animation d’administrateurs indépendants dotés d’une expertise spécifique dans l’immobilier et la gestion de véhicules, - Un pilotage centralisé de la gouvernance, assu- rant cohérence et continuité dans le suivi des opérations. Notre valeur ajoutée réside dans une logique de qualité de la gestion , où l’intégration des enjeux immobiliers et de structuration permet d’assurer une approche à la fois intellectuelle, économique et durable des véhicules . Cette démarche permet : - de fluidifier la prise de décision, - de réduire les risques liés à la gouvernance, - et de renforcer la confiance des investisseurs et partenaires institutionnels. Une demande croissante des acteurs de l’écosystème Ces services ne répondent pas uniquement aux besoins des promoteurs. Ils s’inscrivent aussi dans une attente exprimée par les sociétés de gestion (ManCo), cabinets d’avocats et banques privées . Ces partenaires y voient un double avantage : sécuriser la relation avec leurs clients tout en restant actifs dans le suivi et le développe- ment des projets . Avec cette approche intégrée, TrustConsult Group contribue à renforcer la crédibilité, la transparence et la pérennité des véhicules immo- biliers luxembourgeois, au bénéfice des sponsors comme de leurs investisseurs. Christian BUHLMANN, CEO TrustConsult Group S.A. Clément MARTINEZ, Executive Director TC Property Partners S.A. - Real Estate Services - TrustConsult Group S.A. Web site: http://www.trustconsultgroup.com Luxembourg : simplifier la complexité des fonds immobiliers grâce à une approche “one stop shop”