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Investors with a Preference for Core Real Estate Funds – February 2014

by Oliver Senchal

  • 05 Feb 2014
  • RE

Preqin tracks 856 investors that have made commitments to private real estate funds that primarily follow a core strategy. Collectively, these core investors manage $15.2tn in total assets with an exposure of $923bn to the real estate asset class. 

Of these 856 investors, more than half are based in North America (65%), 27% are located in Europe and the remaining investors are based in the Far East, Australasia and Africa. One significant North America-based investor is Ivanhoe Cambridge Inc., an asset manager that is part of CDP Real Estate Group. It has all of its assets allocated to real estate projects, totalling CAD 37.9bn. However, the largest investor with a preference for core strategy is APG - All Pensions Group. With €346bn assets under management, the Dutch asset manager has 9% of its total assets allocated to the real estate asset class. 

Forty-one percent of the 856 investors that have previously committed to funds, that are primarily core, are public pension funds. Unsurprisingly, private sector pension funds are the next largest group of investors (29%). In terms of geography, 77% of these investors show a preference for North America, 53% and 38% express a preference for investing in Europe and Asia respectively, whereas 29% show a preference for global funds. Over the next 12 months, at least 44 of the 856 institutions will actively seek new private real estate investment opportunities employing a core strategy.

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