INREV says capital raising at record levels in 2017, Europe still leads

The amount of capital raised globally in 2017 for the non-listed real estate industry rose 25% and Europe continues to lead as the investment destination of choice.

The Capital Raising Survey 2018 published INREV has revealed that the amount raised reached record levels in 2017 as investors put in €152.3bn during the period compared with €122m in 2016.

The number of managers raising capital in 2017 also rose 25% to 175 from the year earlier.

For the next couple of years, 69.1% of the managers capital raising to increase, the report revealed.

The survey also highlights that for the third year running Europe topped the list as the investment destination of choice with 44.1%, representing around €67.2bn of the capital raised destined for this region.

North America was next as it added 28.8% of the capital raised followed by Asia-Pacific with 16.4%.

INREV said global pension funds were the highest contributors to the capital raised in 2017 as the institutions accounted for around 35.8% of the contributors. Insurance companies were next with 13.2%. 

“Pensions funds and insurance companies are main providers of new equity pension funds and insurance companies continue to be the main sources of capital for the non-listed real estate industry globally,” the survey stated.

Also, funds led as the vehicle of choice for capital raising in 2017 as more than 55.1% of new equity raised was destined for funds. 

The next largest proportion of capital raised was for separate accounts investing directly, this accounted for 20.7%, the survey revealed.

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