Central and Eastern European-Focused (CEE) Real Estate Funds - April 2013

by Karun Ahluwalia

  • 26 Apr 2013
  • RE

In the period from 2006 to April 2013, Preqin has seen a fluctuation in investor appetite towards CEE-focused real estate funds. In 2006, 12 CEE-focused real estate funds closed having raised an aggregate €1.5bn. These figures dramatically increased in 2007 and 2008 when 26 funds closed garnering a total of €4.5bn. The aftermath of the European sovereign debt crisis resulted in poor fundraising for this region, with only three funds closing in 2010 with a total of €20mn in commitments. Figures in 2012 show the continued downward trend in fundraising within CEE as only four funds closed with €700mn. Fundraising for CEE-focused funds looks to remain challenging in 2013, as there has yet to be any fund closures in 2013.

The largest CEE-focused private real estate fund to have closed since 2006 was CEE European Prime Shopping Center Fund. The fund raised €775mn and utilized core-plus and value added strategies. The second largest fund was Eastern European managed by Fasial Private Bank Real Estate, which raised €560mn and employs an opportunistic and value added strategy.

Preqin currently tracks 20 private real estate funds on the road targeting investment opportunities in Central and Eastern Europe. These vehicles are looking to raise €4bn in total. Although this highlights the existence of investor appetite within the region, fund managers will no doubt face many challenges in fundraising for CEE-focused private real estate funds.

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