Investors commit €4.7b to property funds in March

Real estate funds announced $6.5 bn (€4.7 bn) of capital commitments globally during March, according to online fund community Indirex.

Globally, 54 announcements were reported in March, with 37 of these involving new equity commitments.

North America attracted over half of the cash with Europe taking 16% and Asia 12%.

In Europe, 11 announcements were made with four pertaining to capital commitments. The largest was the $500 mln first closing of La Banque Postale Asset Managements' Infrastructure Debt fund.

Interestingly, Mexico took 11% through the $665 mln IPO promoted by Prudential Real Estate Investors, achieved by combining two of their industrial funds.

Some 80% of the cash was committed at interim raisings and, whilst core/core+ and value-add/opportunity funds were roughly equally represented, two-thirds of investment went to the higher risk groupings.

Debt funds featured strongly again with nine funds taking 13% of the cash. Two new fund of funds were announced. Half the funds had a diversified strategy with industrial being a notable specialist option.