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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.

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