Property Types Targeted by Private Equity Real Estate Funds in Market

by Andrew Moylan

  • 26 Feb 2010
  • RE

Residential assets are the most commonly targeted property type by North America focused funds in market, with 53% of funds expecting to make residential investments. Office assets will be targeted by 47% of North American funds on the road, and industrial properties by 36%. Of the four main property types, retail is the least frequently targeted, with 30% of funds targeting this asset type. Land development is targeted by 16% of funds in market. 13% of funds are targeting mixed-used assets and 9% hotels.

Retail assets are the most frequently targeted property type by European funds in market. 41% of funds in market plan to make retail investments. 37% of funds are targeting office investments, while 29% target residential and 27% industrial. Other notable areas of focus for European fund managers are hotels, which are targeted by 13% of funds, and logistics assets, which 10% of funds will invest in.

For funds focused outside North America and Europe, it is residential assets that are most commonly targeted. A significant 61% of funds in market focused on Asia and Rest of World will invest in residential properties. Other important areas of focus include retail properties, which are targeted by 42% of funds and office properties, which are targeted by 39%. 19% of funds will invest in hotels, a higher proportion than in the other two regions, while just 18% of funds will look to invest in industrial properties, a lower percentage than for Europe or North America-focused funds.

For more information on private equity real estate funds and investors, click here to see how Preqin's Real Estate Online can assist you.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights