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Largest Private Equity Real Estate Funds to Close in Q2 2010

by Andrew Herman

  • 30 Jul 2010
  • RE

The largest fund to close in the second quarter of 2010 was Starwood Global Opportunity Fund VIII, which received commitments of $1.8 billion, making it the third-largest fund to close so far in 2010. The opportunistic fund targets distressed real estate and invests in all property types. Up to 50% of the fund can be invested in the US, 40% in Europe, the Middle East and Africa, 40% in Asia, and 20% in Brazil, Mexico and Canada. Starwood Capital Group also manages the second-largest fund to close in the quarter; the firm raised $965 million for Starwood Capital Global Hospitality Fund II, an opportunistic vehicle. The fund targets North American, European and Asian hospitality sectors.

Other notable funds to close included the JPY 75 billion Fortress Japan Opportunity Fund, which primarily targets real estate-related debt in Japan, and the $615 million Mesa West Real Estate Income Fund II, which focuses on originating first mortgages with terms of 2-4 years.

The largest fund closed by a firm headquartered outside of North America was Perennial Chinese Shopping Mall Fund. Perennial Real Estate raised CNY 1.2 billion for the fund, which targets shopping malls located in China.

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