GlobeSt.com: It's a huge and diverse organization. What's the essential mission?

Armstrong: The aim is to produce a common understanding of real estate and how it relates to the local economies and the local business, to understand the larger context in which real estate operates and to provide the same standards of professional service around the world.

GlobeSt.com: Our story on foreign investment bodes well for the UK. Does it ring true for you?

Armstrong: It's true. The UK has been doing better than the rest of Western Europe, which is going through a sluggish patch. The larger countries have not seen the same economic development the UK has seen, and that's an important factor. There's also the consideration of the base language, the attractions of London as a city and the appeal of having a UK operation. So, despite the fact that prices are going up and yields are going down, the money has been pouring in. It's safe politically, and it's got a good economic future.

GlobeSt.com: And can you give more in terms of the comparative political/economic climate?

Armstrong: We're outside the euro currency zone, unlike the rest of Europe, so we can set our own interest rates; we're not a one-size fits all country. I also think the political reforms of the 1980s have given us a much sharper economic structure. We don't have the same inflexible and high-cost labor. In all, we have a much more attractive look to the investor.

GlobeSt.com: We talked at Mipim with Nick van Ommen of EPRA. He saw a 10-year outlook for the establishment of a standardized European REIT. Do you buy that?

Armstrong: He may not be far off. There simply isn't the pressure to establish a uniform European REIT. But there is progress in terms of standards. International accounting standards in the European Union-listed companies have become mandatory. That means that international valuation standards will have to follow suit. We're working on establishing those standards. In fact, the American accountancy profession is beginning to move toward international standards of market value. That would be a fundamental change that will allow investors to compare like to like across countries. Right now real estate is regarded as a national issue. That has to change, and that's the object of the next few years' work.

GlobeSt.com: You mentioned the cultural differences, and a region with real cultural variations comes to mind: Asia. Is it all hype or is it as hot as everyone is saying?

Armstrong: The risks and opportunities of Asian investment are shifting quite markedly. Take Japan. For 12 years, there was great political stability but economic stagnation in the property markets. Suddenly in 2004 there developed an element of greater transparency and a more comfortable feel for investors. We're now getting involved in valuation standards for our members in Japan.

GlobeSt.com: What exactly are you trying to accomplish?

Armstrong: We're trying to see how international valuation standards and even greater transparency can apply. I've been personally advising the Japanese cabinet office on the issue. We're using as our model draft legislation we worked on here in the UK to make the price paid for buildings openly available on line. This would allow investors to know at least what comparative buildings were costing. So Japan is seeing a shift, and the prospects are much better than they've been in the past 12 years. That's encouraging.

GlobeSt.com: And elsewhere in Asia?

Armstrong: There are very different risks. In China, the legal system and the question of exactly what the property rights were going to be have both been risks. That being said, the political situation has clearly influenced investors into believing the system can deliver economic growth. And it's widely thought that the ruling communist party requires GDP growth of 8% or more to sustain social stability.

GlobeSt.com: Do you accept that?

Armstrong: Yes I do. But it's a difficult balancing act. Investors have to balance the economic inducements against a political system that won't change in a hurry and determine if they can benefit economically under that gradually evolving political system. Again we are involved in valuation standards and due diligence.

China received $50 billion in US investment dollars in 2004. We're trying to provide those investors—all foreign investors—with the confidence that advisors there are giving you accurate advice. We're doing a lot of work there to help build that investor confidence. The Western portion of the country particularly is a Wild-West area for investors. Standards practiced by their own professionals are the only way to inspire more investors to come to Asia.