GLOBAL - More than 200 new unlisted real estate funds are estimated to have come to the market in 2009, but this represents a 73% reduction in the number of funds launched globally since the height of the market in 2007.
Feri Property Funds Research's (PFR) global universe of unlisted vehicles (excluding funds of funds) currently stands at over 2,380 with an estimated gross asset value of €1.22trn.
Value-added strategies have been hardest hit with a 37% decline in the number of funds launched globally, according to the study, from representing over 45% of all fund launches in 2005 to just 29% so far for 2009.
Core fund launches have remained relatively stable, accounting for 23% by number, although this did dip to 13% in 2008.
There has been a 55% increase in the number of opportunistic funds launched since 2005, and opportunity funds account for close to 50% of the vehicles launched in 2008 and 2009.
The level of equity committed to funds has seen a dramatic decline from the beginning of 2008, although this has picked up somewhat over the last two quarters of 2009.
Since the beginning of 2008, Feri PFR has recorded €27bn as being invested in global funds (42% of the total equity committed), followed by €13bn and €10bn to Asian and European funds respectively.
There have been a significant number of new ‘recovery' funds launched, targeting UK prime and/or distressed properties during 2009, according to Feri PFR.
The 29 UK funds that have been, or are due to be launched this year, have a combined target gross asset value of €10.3bn, including the listed vehicles of Max Property and NewRiver Retail.
However, this could figure could easily increase to €11bn , according to PFR, if new pan-European and global funds are factored in. To get to this number it would only require these cross-border funds to allocate 5% of their capital to the UK market said researchers.