Preqin Quarterly Update: Real Estate, Q2 2016
Although fewer funds closed in Q2 than Q1, the trend of capital concentration in private real estate asset class has continued, with fierce competition for investor capital and more funds currently in market targeting greater amounts of capital than seen in recent years. Performance also remained strong, resulting in positive average changes in NAV for 22 consecutive quarters. More investors are now seeking opportunities beyond North America in the next 12 months, particularly Europe, although over half of investors in response to a recent Preqin survey on Brexit stated that they would invest less in the UK market over the next 12 months. Q2 has also seen an increase in deals on mixed-use assets, which accounted for 27% of all transactions.