Preqin Quarterly Update: Real Estate, Q3 2016
Thirty-one private real estate funds reached a final close in Q3 2016, collectively raising $18.5bn – a slowdown compared with Q2. However, the 808 completed PERE deals resulted in the second highest quarter for deal activity since the beginning of 2014. In terms of performance, closed-end private real estate funds continue to perform strongly for investors, as Q3 marks an increase in NAV for 23 consecutive quarters. In the wake of the Brexit vote in the UK, institutional investors are increasingly looking to Europe, which has overtaken North America in terms of investors’ preferences compared with Q2.