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Western European Private Real Estate Fundraising – May 2013

by Luke Alexander

  • 03 May 2013
  • RE

Between 2006 and May 2013, Preqin’s data has seen a declining trend in Western European real estate fundraising. In 2006, 73 funds targeting Western Europe closed on an aggregate €119bn. These figures increased in 2007 when 87 funds closed after raising an aggregate €30bn. In 2008, 66 funds closed on a total of €20bn. The fundraising landscape for Western European real estate looked bleak in 2009, when 39 funds closed on €10bn.

In 2010, 35 funds raised only €10bn. A marginal increase in fundraising followed in 2011, when 32 funds closed on an aggregate €16bn. The lowest fundraising levels were observed in 2012, when only 26 Western Europe-focused private real estate funds raised a total of €6.9bn. Fundraising for this region remains slow in 2013. As of May 2013, five funds have raised an aggregate €2.5bn.

Although few funds targeting Western Europe have achieved a final close so far in 2013, there are currently 85 funds on the road which will be investing in Western Europe, targeting an aggregate €31bn. This could be viewed as a sign of an increase in investor appetite for Western European real estate opportunities. However, fund managers will undoubtedly struggle in the wake of increased fund manager competition and investor caution.

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