Opportunities for Investors in Private Equity Real Estate Retail Funds – November 2012

by John Mather

  • 13 Nov 2012
  • RE

Data from Preqin Investor Network, which tracks global fundraising, shows that there are currently 156 private equity real estate funds with exposure to retail investments. These vehicles are seeking an aggregate of $5.3bn in capital commitments and have an average target size of $359mn. A significant proportion of these funds (73) are yet to reach a first close, and 59 have held an initial interim close; a further 24 retail-focused funds have held two or more interim closes.

A regional breakdown of the focus of these vehicles highlights the global nature of current fundraising. Eighty-one vehicles have a main focus on opportunities within the US, the largest of which is the Blackstone Real Estate Debt Strategies II fund which is seeking $4bn. Elsewhere, 54 funds have a main focus on Europe, where the largest vehicle currently on the road is the AXA Real Estate’s European Diversified Property Fund, seeking €1bn. There are also currently 14 funds with a main regional focus on Asia investments, with the remaining vehicles seeking primary exposure to Africa, the Americas and the Middle East.

For investors looking for opportunities within funds that solely focus on retail investors, Preqin Investor Network currently tracks 15 funds  currently fundraising, which are seeking an aggregate $4.2bn in capital commitments. Ten vehicles have a main focus on European investments and the remaining five have a predominant focus on US investments. The largest fund that focuses solely on retail investments is Cushman & Wakefield Investors Pan-European Urban Retail Fund. It employs a core-plus strategy and is currently seeking €500mn in commitments; it is expected to target retail investment opportunities in France, Germany, Sweden and the United Kingdom.

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