What is the ODCE Index?

PREDEX operates within the NFI-ODCE Index (“ODCE Index”) guidelines for leverage, property type and geographic diversification. Since 1978, the Index has been widely used to represent the stabilized, income-producing commercial and multi-family real estate market. Funds included in the Index invest in private equity real estate and operate under a strict set of criteria:

  1. Real Estate. At least 80% of the market value of net assets must be invested in real estate, and no more than 20% in cash or cash equivalents.
  2. Private Equity. At least 80% of the market value of real estate must be invested in private equity real estate properties, and no more than 20% in real estate debt instruments.
  3. Domain. At least 95% of the market value of real estate must be invested in the U.S.
  4. Property Types. At least 80% of the market value of real estate must be invested in office, industrial, apartment and retail properties.
  5. Life Cycle. At least 80% of the market value of real estate must be invested in operating properties, and no more than 20% invested in (pre)development/redevelopment or initial leasing / lease-up.
  6. Leverage / Debt. Leverage is limited to 40% of the market value of net assets.
  7. Diversification. No more than 65% of the market value of real estate may be invested in one property type or one geographic region.

Funds in the ODCE Index must also comply with the NCREIF Real Estate Information Standards, including annual audits, quarterly valuations, and time-weighted returns.