Preqin Quarterly Update: Real Estate, Q1 2015
Private real estate fundraising in Q1 2015 was strong, with 24 private real estate funds reaching a final close, raising an aggregate $29bn in institutional commitments, making it the most successful quarter since Q4 2013 in terms of capital raised. A large portion of this capital was accounted for by Blackstone Real Estate Partners VIII, which at $14.5bn, becomes the largest private real estate fund ever raised. Recent performance of real estate funds has been strong, with average positive changes in NAV for closed-end private real estate funds for 18consecutive quarters, and encouraging IRRs for funds of recent vintage years. As a result institutional appetite for real estate is positive and many investors are planning sizeable commitments to real estate in the coming year.