Preqin’s Real Estate Online service contains detailed information on over 4,400 private real estate funds, including 111 that focus on investments in Germany. Extensive profiles feature detailed information on fundraising and closes held, known investors, performance data and direct contact information for key decision makers. Fundraising for Germany-focused private real estate funds has remained at relatively low levels, declining since the peak of €1.9bn raised by 10 funds reaching a final close in 2011, to just five funds closing on an aggregate €0.7bn in 2014. Interestingly, however, 2015 so far has already seen two Germany-focused funds reach a final close, including German Senior Debt Fund, which raised €500mn, making it the largest private real estate fund focusing on the country to close since 2012.
As can be seen in the chart below, funds focusing on core investments have accounted for the largest number of Germany-focused funds closed between 2012 and 2014, with nine funds raising a total of €1bn. Six opportunistic funds also closed in this time period, yet they raised a total of just €500mn, with two value added funds raising €800mn.
In terms of property focus, although funds making diversified property investments account for the largest proportion of funds closed from 2012 to 2014 (40%), funds investing in residential property account for a relatively significant 26%, with retail investments representing a further 14% of funds closed.
Despite the annual number of Germany-focused funds closed declining in the last few years, the fundraising market is increasingly competitive, with the number of funds in market focusing on investments in the country increasing from seven in January 2010 to 12 in January 2015, with aggregate target capital increasing from €1.3bn to €2.9bn over this time period.