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Closed-End Core Real Estate Vehicles Fundraising Update – October 2012

by John Mather

  • 03 Oct 2012
  • RE

In recent years markets have witnessed the so-called ‘flight to quality,’ where real estate investors have pivoted towards core assets with strong economic fundamentals or with ‘safe haven’ characteristics. As such there has been an increase in both open and closed-end real estate funds targeting core assets. Preqin Investor Network currently tracks 66 closed-end core funds directly targeting real assets as opposed to underlying funds. These funds are seeking an aggregate $20bn in capital commitments and have an average target size of $317.7mn. Forty-one of these vehicles have a primary focus on Europe and are targeting aggregate commitments of $13.3bn,while 18 funds have a main focus on US investments and are seeking commitments of $4.2bn. The remaining seven funds are targeting investments in Rest of World and are seeking an aggregate $2.5bn in capital commitments.

Of the 66 real estate funds on the road, 50 are solely focused on core or core and core-plus investments, while the remaining 16 are targeting a combination of core and higher risk/return profile investments. The largest real estate fund currently on the road solely focused on core investments is the UBS (D) European Mega Core Property Fund targeting €1bn. This is followed by Datacore Fund, which is seeking commitments of $1bn.

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