The answer is yes, you need to install VS2013. Then add a new string value named VCTargetsPath12
to
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\MSBuild\ToolsVersions\12.0\11.0
The value should be:
$([MSBuild]::ValueOrDefault('$(VCTargetsPath12)','$(MSBuildExtensionsPath32)\Microsoft.Cpp\v4.0\V120\'))
You also need to change the
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\MSBuild\ToolsVersions\12.0\11.0\VCTargetsPath
value to:
$([MSBuild]::ValueOrDefault('$(VCTargetsPath)','$(MSBuildExtensionsPath32)\Microsoft.Cpp\v4.0\V120\'))
If you continue to have problems with some projects, open the .vcxproj file and make sure the Project element's ToolsVersion attribute is set to 12.0 instead of 4.0. Do the same for the .vcxproj.filters.
If you get some "SetEnv" related errors just rebuild those projects that failed.
Verified on multiple machines to work.