Closed-End Core Real Estate Funds on the Road

by Andrew Moylan

  • 01 Apr 2011
  • RE

The so-called ‘flight to quality’ saw a significant increase in investor appetite for core properties in recent months and this has resulted in an increase in both open and closed-end real estate funds targeting core assets. There are currently 53 closed-end core funds in market, targeting an aggregate $19.1 billion in equity commitments. 27 of these have a primary focus on Europe and are targeting aggregate commitments of $10 billion. Presently, 13 North America-focused funds are seeking commitments of $4.9 billion, while the same number of funds are targeting Asia and Rest of World and are seeking commitments of $4.3 billion.

Of the 53 funds on the road, 42 are solely focused on core or core and core-plus investments, while 10 are targeting a combination of core and higher risk/return profile investments. The average target size of core funds on the road is $406 million, slightly larger than the$387 million average target size of all funds on the road.

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