Lone Star Real Estate Fund IV was the largest property fund to close globally in Q2 2015 after securing $5.8 bn (€5.6 bn) for global opportunities, according to fund data provider Preqin.

Lone Star Real Estate Fund IV was the largest property fund to close globally in Q2 2015 after securing $5.8 bn (€5.6 bn) for global opportunities, according to fund data provider Preqin.

This makes it the 9th largest real estate fund of all time, Preqin said. The fund is focused on Western Europe, the US and Japan. The largest fund overall that closed in the first six months of the year was Blackstone's $14.5 bn opportunistic Real Estate Partners VIII which has an exclusive focus on the US.

The biggest fund with an exclusive focus on Europe to close over the period was a €2.9 bn commercial real estate debt fund launched by Paris-based AXA Real Estate. Deutsche Asset & Wealth Management also launched a commercial real estate debt fund over the period with a total volume of €500 mln. The vehicle is focused on senior debt in Germany.

All in all, 11 European offerings raised $12.8 bn over the six-month period, Preqin said. This compares to $10.3 bn by 22 North America-focused funds and $2.5 bn by Asia-focused funds. So far this year, real estate funds closed have secured an aggregate $60 bn, the second highest half-year figures for private real estate fundraising since the financial crisis, after H2 2013 when $64 bn was raised.

Altogether, managers of closed-end private real estate funds have more than $254 bn in dry powder, or unspent committed capital for investments globally. This is up 37% from the $185 bn recorded in December 2014, and represents the highest amount on record.

The majority of dry power - or $ 133 bn - is focused on North American real estate, while in terms of strategy, opportunistic vehicles have the highest amount of capital available to invest globally at $100 bn. Of the remaining €121 bn, some $75 bn is focused on Europe.

There are currently 416 private real estate funds in market competing for institutional commitments, and are seeking a combined $149 bn in capital.