Industrial-Focused Private Real Estate Fundraising – December 2012

by Joanna Chavasse

  • 10 Dec 2012
  • RE

Preqin's Real Estate Online database shows that there are currently 21 solely industrial-focused real estate funds in market looking to raise an aggregate $6.3bn from investors.

From 2006 to November 2012, the number and aggregate capital raised by industrial-focused private real estate funds fluctuated, peaking in 2007 when 18 funds raised an aggregate $4.5bn. This surpassed both the $2.5bn raised by 11 funds in 2006 and the 11 funds which raised $1.2bn in 2008. 2012 has seen a slight increase in fundraising, with $1.5bn raised in the period January to November 2012, up from $1.3bn in 2011. However, 2012 seen a decrease in the number of funds closed, with four industrial-focused private real estate funds closing to date, down from seven in 2011.

Between 2006 and November 2012, 66 solely industrial-focused funds held final closes, raising an aggregate $15.3bn from investors. North America-focused funds raised the most capital, with $6.6bn in commitments secured by 29 funds. In the same period, 20 Europe-focused funds raised $4bn, closely followed by Asia-focused funds raising $3.4bn from 14 funds. An additional $1.3bn was raised by three funds focusing on Latin America.

The 21 industrial-focused private real estate funds currently on the road are targeting a variety of regions. Eight funds are targeting North America, looking to raise $2.3bn, while seven are Asia-focused with an aggregate target of $2.4bn and the remaining six are targeting $1.6bn to invest in Europe. The two largest funds currently seeking capital are KTR Industrial Fund III and Prologis Japan Development Fund I. The US-focused KTR Industrial Fund III is looking to raise $750mn and is targeting value added investments. Prologis Japan Development Fund 1 is targeting $600mn and will focus on opportunistic investments throughout Japan.

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