26 closed-end private real estate funds closed in Q4 2011, raising an aggregate $10.8bn. The largest fund to close during the quarter was Carlyle Realty Partners VI. The $2.32bn opportunistic fund targets a broad range of real estate and real estate-related investments and is primarily focused on US markets. It principally invests in hotel, office, residential, retail and senior home properties, as well as purchasing distressed loans, and focuses on single-property transactions. The second largest fund to close in the last quarter was DRA Growth & Income Fund VII, which raised $1bn. This US-focused fund aims to invest in a diversified portfolio of office, retail, multi-family, industrial and other real-estate related properties and assets.
Just one Europe-focused real estate fund closed in Q4 2011. Gateway, a core-plus and value added fund, is managed by GE Capital Real Estate and raised €400mn ($535mn). The fund invests in office properties in Greater London, Greater Paris and Berlin, Frankfurt, Hamburg and Munich.
Six Asia and Rest of World-focused private real estate funds closed in Q4 2011 and the largest of these was EI Fund V. Managed by Equity International, the fund raised $650mn and will primarily invest in real estate firms operating outside of the US, with a focus on South America and Asia. The second largest Asia and Rest of World fund to close is the $500mn Brazil Real Estate Opportunities Fund II. This opportunistic fund invests in debt or equity interest in real estate and real estate related opportunities, primarily in the Brazilian residential, office, retail and industrial property segments.
In addition to the 26 closed-end private real estate funds that closed, four real estate fund of funds vehicles held final closes, raising an aggregate $915mn. The largest of these was the $630mn Siguler Guff Distressed Real Estate Opportunities Fund, which primarily invests in opportunistic and distressed real estate funds.