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Value Added Private Real Estate Fundraising

by Jonathan Ma

  • 21 Oct 2011
  • RE

There are currently 191 private real estate funds in market seeking to raise an aggregate of $55.3bn that adopt a value added strategy. Of these funds, 68 have had at least one interim close raising a total of $20.4bn towards their respective targets. There are 132 US-focused funds in market, 32 Europe-focused funds and 27 funds targeting Asia and Rest of World. Of these funds, 70 have adopted a value added only strategy, with 62 employing a combination of value added and other strategies. The largest value added fund in market is Alpha Asia Macro Trends Fund II. The fund has held one interim close since inception and it has target of $1.5bn. It adopts a value added strategy with elements of core-plus, and it is targeting a diverse range of properties in developed Asian markets such as Hong Kong, Japan, Singapore, South Korea and Taiwan.

During the last five years, 498 value added funds have reached a final close raising an aggregate of $171bn. 311 funds are US-focused, 124 funds target Europe and the remaining 63 are Asia and Rest of World-focused. The largest fund to close since 2006 is Beacon Capital Strategic Partners V, a value added fund targeting office properties throughout the US. The fund raised $4bn and it closed in August 2007.

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