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Industrial-Focused Real Estate Fundraising – September 2012

by Luke Alexander

  • 21 Sep 2012
  • RE

There are currently 19 solely industrial-focused real estate funds in market, targeting an aggregate $4.9bn in capital commitments. Seven of these funds have already held at least one interim close.

Five of the industrial-focused funds currently fundraising are targeting primarily European markets and are seeking $1.3bn in capital commitments. The largest of these funds is IVG Garbe Logistik Fonds, managed by IVG Funds. The €400mn core fund invests in high-quality logistics properties in prime locations in Germany. Eight solely-industrial funds are US-focused, seeking an aggregate $2.3bn. The largest of these is the $750mn KTR Industrial Fund III, which opportunistically targets properties in the US. Elsewhere, there are six Asia and Rest of World-focused funds in market, seeking an aggregate $1.4bn.

Between 2006 and September 2012, 62 solely industrial-focused funds held final closes, raising an aggregate $15.0bn from investors. US-focused funds raised the most capital, with $6.8bn in commitments raised by 27 funds. Twenty Europe-focused funds raised an aggregate $4.0bn and 15 Asia and Rest of World-focused funds raised an aggregate $4.2bn.

2007 was the best year for fundraising for solely-industrial focused real estate funds, with 18 vehicles holding final closes, raising an aggregate $4.5bn in capital commitments. The number of funds successfully holding final closes fell in 2008, with 10 funds closing on an aggregate $1.7bn. In the slump after the economic crisis, just seven funds held final closes in 2009, raising $2bn from investors. The fundraising environment improved marginally in 2010, with eight funds raising an aggregate $2.2bn in equity. 2011 saw a further decline with only six industrial-focused funds holding final closes, raising a combined total of $1.3bn from investors. Between January and September 2012, two industrial-focused funds have held final closes, raising $0.7bn.

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