Abstract
<jats:p>Typically academic papers and scientific works in the field of real estate investments describe idealized processes, rather than the actual internal mechanisms of the funds. These contribute to a need for a deeper study of the investment process of real estate funds, the improvement of their existing system and a detailed analysis of its stages. This article is focusing on the system development, analysis and improvement for securing the investment process of real estate funds. A definition of the system for securing the investment process of a real estate fund has been formulated. It’s been explained as a comprehensive mechanism for making investment decisions and building an asset portfolio while taking into account the fund's investment strategy, external and internal organisational factors, as well as its fundamental goals and principles. The main phases and stages of the system are specified. A preparatory phase includes the following stages: internal procedures formalization, a database and expertise development, establishing contacts with market players and reception of investment proposals. An analytical phase incorporates: preliminary screening of the received proposals, the asset longlist examination, a scoring model application, development of the asset shortlist, and the purchasing decision making. The completion phase involves sending commercial offers to the sellers, offer acceptance by the seller, due diligence, approval of the purchase terms, structuring the deal, drafting contracts and closing the deal. It has been confirmed that a system development for ensuring the investment process of real estate funds should be based on the principles of integrity, adaptability, economic feasibility, innovation, prevention, participation, integration and complexity. The above principles and compliance with them aim to ensure the presence of an unwavering basis and facilitation of the efficient design and implementation of the investment process of real estate funds. A regular system’s efficiency assessment is proposed based on the following metrics: number of assets in the shortlist p.a., the number of closed deals p.a, and the portfolio returns. Moreover, a three-dimensional matrix for a visual interpretation of the results obtained is recommended to be applied. It is summarized that the proposed system of real estate funds investment processes is designed to perform strategic, preventive, informative, communication, accounting, diagnostic, coordinating, reputational and knowledge management functions.</jats:p>