19 closed-end private real estate funds closed in Q3 2011, raising an aggregate $11.2bn. The largest fund to close in the quarter was Lone Star Fund VII, which raised $4.6bn. The debt and distressed fund targets distressed loans and securities across a range of financial and other investment assets in Japan, Western Europe and North America. Another large fund to close in Q3 2011 was ECE European Prime Shopping Centre Fund. The fund acquires core-plus and value added shopping centre assets in Europe, with a focus on the property markets of Germany, Poland, Hungary, Czech Republic, and Austria. The €775mn fund targets large properties that combine upscale stores with necessity retailers, such as butchers and bakeries.
Ten Europe-focused funds raised an aggregate $5bn during the quarter. Altarea Cogedim’s AltaFund Value-Add I raised €630mn. The France-focused, value added fund seeks to take advantage of a recovery in the market by investing in office properties that can be actively managed or restructured, and land plots that can be developed. The £500mn UK Property Income Fund managed by Legal & General Property also closed in the quarter. It targets office, retail and industrial assets in the UK, that are well located, with strong and stable income streams.
Three Asia and Rest of World-focused funds closed in the quarter, raising an aggregate $782mn. The largest of these is the $350mn Tishman Speyer Brazil Fund III. The opportunistic vehicle develops mixed use, multi-family and office properties in Brazil.