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Core-Plus Private Real Estate Fundraising

by Carla Henry

  • 04 Nov 2011
  • RE

There are currently 91 core-plus private real estate funds in market seeking to raise an aggregate of $34.3bn from investors. Of these funds, 39 have held at least one interim close since inception, raising a total of $16.3bn towards their respective targets. 23 have adopted a core-plus only strategy, with 68 employing a combination of core-plus and other strategies. So far 10 of the 23 solely core-plus funds in market have held at least one interim close, with five of these having two or more interim closes.

38 of these core-plus funds are focused on investing in real estate in the US and are targeting an aggregate $13.7bn. 40 funds are focused on investing in Europe and are targeting an aggregate $14bn. The largest core-plus vehicle targeting Europe is European Diversified Fund, managed by AXA Real Estate, currently targeting €1.5bn. The fund invests in logistics, industrial, office and retail properties, focusing primarily on West Europe. The remaining 13 funds are targeting Asia and Rest of World, and are seeking to raise an aggregate $6.6bn.

The largest core-plus vehicle on the road is the US-focused CIM VI: Urban REIT, managed by CIM Group. The fund has held three closes since inception, and has a target set at $2bn. It adopts a core to core-plus strategy, and is targeting a diverse range of properties in North America, focusing primarily on urban areas which CIM has already qualified for investment.

Since 2005, a total of 144 core-plus real estate funds have successfully closed, raising an aggregate $47.7 bn. Primarily US-focused funds have raised the most capital, with 51 funds accumulating $20.5bn in commitments. Europe-focused funds have raised an aggregate $18.3bn from 61 funds. Asia and Rest of World-focused funds that closed since 2005 have raised a total of $8.8bn.

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