Private Equity Real Estate Fundraising in Q4 2009

by Andrew Moylan

  • 29 Jan 2010
  • RE

In the final quarter of 2009, 22 private equity real estate funds reached a final close, raising an aggregate $8.2bn. This was a small increase on the aggregate fundraising from Q3, which saw the same number of funds raise $6.9bn.  In terms of fund focus, 12 North America focused funds raised $3bn in Q4. Five European funds that closed during the quarter also raised $3bn, while five Asia and Rest of World vehicles raised $2.2bn.

14 of the funds to close in Q4 are managed by firms headquartered in the US. These received aggregate commitments of $4.6bn. Four funds managed by UK-based firms raised an aggregate $2.2 billion, and the remaining $1.2bn was raised by two fund managers based in Hong Kong and one based in the Cayman Islands.

The largest fund to close in Q4 2009 was Orion European Real Estate Fund III, which closed on €1.3bn. The fund targets underperforming and poorly managed properties across Western Europe, as well as those needing capital improvements, and purchases discounted loan portfolios from European banks. Fudo Capital II, managed by Hong Kong-based CLSA Capital Partners, raised $815mn for Fudo Capital II, which invests in a diversified portfolio of properties located primarily in top-tier cities throughout Asia. The fund buys completed buildings, makes investments in real estate operating companies and/or platforms, and develops properties in certain markets. Heitman European Property Partners IV raised €505mn to invest in office, logistics, retail and residential properties across 13 countries in Central and Eastern Europe.

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