News

Capital raised for real estate globally reaches new high

Commercial_real_estate_riseThe amount of money raised globally for investment in real estate last year was closing on US$200 billion and described as a “new high”.

In total, fund managers raised $193.7 billion of real estate investment capital – which includes $185.4 billion for non-listed real estate, a 15.7% rise.

Of the total raised, around $91.8 billion was yet to be invested.

The organisation behind the ‘Capital raising survey 2019’ – the trade bodies Anrev, Inrev and NCREIF – said the “surge in capital flow” reinforced an ongoing trend in capital raising for real estate and that just over 70% of the 203 fund managers surveyed expected capital raising activity to increase.

The research found:

  • Europe strategies attracted $83.2 billion (44.8%)
  • North America strategies attracted $61.4 billion.
  • Asia Pacific strategies attracted $26.9 billion (14.5%)
  • Global strategies and South American strategies at raised $12.7 billion and $1.3 billion, respectively

More investors from North America were seen to be participating in the market:  37.3% of all equity raised was from North America compared with 27.9% in 2017.

They were also seen to be investing comparatively more overseas.

Asia Pacific fund managers earmarked 74.9% of new equity for vehicles with an Asia Pacific strategy and 22.4% to be split between mainly European and then North American and global vehicles.

Fund managers in Europe planned to deploy 81.4% of the capital they raised in their home region.

North American fund managers will invest comparatively the least in their domestic market at 66.2% of new capital.

©2019 funds europe