The volume of capital raised for Europe-focused real estate funds with a value-add strategy more than trebled in 2014 compared to the previous year, research from fund data provider Preqin shows.
The volume of capital raised for Europe-focused real estate funds with a value-add strategy more than trebled in 2014 compared to the previous year, research from fund data provider Preqin shows.
In 2014, eight vehicles raised a combined €3.4 bn for the segment compared to just €800 mln the previous year. The average size of vehicles also more than trebled to €419 mln thanks to mega funds managed by the likes of Blackstone and Lone Star.
The 2014 figure is close to the volume in 2006 when a total of €3.6 bn was raised for value-add strategies. It is still far off, however, from the peak of €9.2 bn raised in 2007 for 38 different vehicles.
Since 2007, investors have focussed more heavily on core and core plus strategies while appetite for value-add declined sharply. In 2007, the average fund volume was €263 mln and in 2006 it came to €161 mln.
See the April edition in PropertyEU Magazine for more on Preqin's real estate fund research.
