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Europe-Based Investors in Private Real Estate Funds – June 2013

by Karun Ahluwalia

  • 26 Jun 2013
  • RE

Preqin's Real Estate Online currently tracks 768 Europe-based investors that are active in the private real estate asset class. Thirty-one percent of Europe-based investors in private real estate have total assets under management (AUM) of less than €500mn. Twenty-nine percent have an AUM of between €1- €4.9bn. Only 5% of private real estate investors located in Europe have an AUM which is greater than €20bn.  

In terms of the breakdown of Europe-based private real estate investors by real estate allocation, 33% have between €50 and €249mn allocated to the asset class. Only 6% of such investors have an allocation of less than €10mn.

Preqin’s data identifies that Europe-based investors have a strong preference for core vehicles, with 85% favouring this strategy, which may highlight the cautious nature of this investor group given the current economic climate. Fourty-six percent of all European private real estate investors exhibit a preference for value added funds, with opportunistic funds in the sights of 41%. Thirty-eight percent of European investors favour core-plus vehicles and 19% consider fund of fund vehicles. Debt and distressed funds are each on the radar of 15%. Only 5% of Europe-based investors consider secondaries.

Unsurprisingly, Europe remains the preferred geographic region of European private real estate investors with 95% focusing on domestic markets. Nevertheless, there still seems to be some strong interest in Asia, as 30% of Europe-based investors have a preference for this region. North America was also held in high regard by European investors with 28% interested in the region.

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