NREI_INSTITUTIONAL OUTLOOK_ Penton Media December 7, 2009 If you want to view this on the web go to: http://enews.penton.com/enews/nrei/v/769 TOP STORY --Investors Get Their Wish As Fund Managers Begin to Trim Fees By Ben Johnson With the approach of the holidays, institutional investors are hoping for a few gifts of their own from their private equity investment partners. At the top of their wish list: lower fees. Thanks to billions of dollars in losses on their real estate investments over the past year, many pension funds and other institutional investors are ratcheting up the pressure on their partners to reduce, and in many cases, restructure the fees paid for their services. In the go-go days of the mid-2000s that preceded today's credit crunch, capital was free flowing and returns were high. Investors happily poured billions of dollars into private equity real estate funds. Now those days are long gone, and the pendulum of negotiating strength has swung decidedly from general partners to limited partner investors. To view the full article go to: http://nreionline.com/finance/news/fund_managers_trim_fees_1207/ CAPITAL TRENDS --Signs of Life Emerge in Commercial Real Estate Lending Market David Lynn, PhD Several positive developments appear to be emerging in the real estate capital markets, providing a glimpse of optimism as investor sentiment begins to rebound. Case in point: Simon Property Group, an A-rated blue chip real estate investment trust (REIT) with a strong balance sheet, issued $650 million of 10-year unsecured debt at 10.8% in March. In May, Simon issued $600 million of 5-year notes at 7%. The nation's largest shopping center owner issued another $500 million of 5-year notes at 5.5% in August. Several other public REITs also were able to raise large amounts of both secured and unsecured debt financing. To view the full article go to: http://nreionline.com/finance/news/signs_of_life_emerg_1207/ ONLINE EXCLUSIVE --High-Net-Worth Investors Turn Bullish on Real Estate, But Study Suggests They Are Too Exposed By Matt Valley A global survey of more than 2,000 high-net-worth investors commissioned by Barclays Wealth reveals that approximately one in four respondents (26%) believe that residential and commercial real estate provide better long-term prospects than other asset classes. Slightly more than half of respondents expect an increase in the value of their real estate investments over the next two years, and 35% plan to increase their real estate exposure in the near term. The survey findings were contained in a Nov. 30 report titled "Prospects for Property: On Solid Foundations?" What's the basis of such optimism in the face of global economic headwinds and a lingering credit crunch? One explanation is that 40% of respondents with at least $50 million in assets have more than half of their investment portfolio tied up in real estate. 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