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Asia-Pacific-Based Private Real Estate Fundraising on the Rise - July 2015

by Philip Wedge

  • 31 Jul 2015
  • RE

Preqin’s Real Estate Online currently tracks 427 private real estate funds in market, which are looking to raise a collective $149bn. North America-based private real estate fund managers continue to dominate the market, as they seek to raise 65% of this aggregate total and represent 62% of the number of funds currently fundraising. 

As the chart above shows, North America-based real estate firms are seeking to raise 263 funds targeting an aggregate $96bn – approximately three times the number and value of their Europe-based counterparts. Asia-Pacific-based firms are looking to raise more and more capital; 61 funds are looking to raise a total of $15bn, compared to 33 funds targeting $10bn two years ago. The remaining 22 funds are being raised by managers outside the aforementioned regions, with Brazil-based managers representing 61% of the $4.6bn aggregate target capital.

Interestingly, while Asia-Pacific-based fund managers have fewer funds in market than Europe-based managers, in terms of funds closed this year, Asia-Pacific-based managers have secured more capital. Twenty-four vehicles reached a final close by managers based in Asia-Pacific, raising $12bn, while Europe-based managers have secured $11bn from 18 private real estate funds.

Brookfield Strategic Real Estate Partners II, raised by Canada-based Brookfield Asset Management, is the largest fund currently in market, targeting $7bn in capital commitments. The fund will focus on opportunistic investments across a diversified property pool, with particular interest in both commercial units and real estate companies. Outside North America, the largest fund in market is AgFe Real Estate Senior Debt Floating Rate Fund, raised by UK-based AgFe. The vehicle is targeting £1.5bn to originate commercial mortgages secured on UK commercial property.

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