The volume of capital raised in the non-listed real estate market has risen ‘substantially’ over the past year, says industry body Inrev.
The volume of capital raised in the non-listed real estate market has risen ‘substantially’ over the past year, says industry body Inrev.
Total capital raised amounted to €29.5 bn, the highest level since 2008, according to the Inrev Capital Raising Survey for 2012 released on Thursday.
Of the total, €11.5 bn was raised by non-listed real estate funds.
The results suggest growing investor confidence in the market despite challenging economic conditions, Inrev said.
‘These are encouraging data. They indicate that investors believe the market has reached its lowest point and are committing capital once again,’ said Casper Hesp, director of research and market information at Inrev.
He added: ‘There is also clearly an appetite for non-listed real estate funds which, to some degree, counters suggestions of a move away from funds towards alternatives such as club deals, JVs and real estate debt.’
Nonetheless, alternative investment vehicles remain popular with some €9.5 bn being raised for separate accounts and €4 bn for joint ventures and club deals combined over 2012.
Investors are also moving up the risk curve, the survey found. While 63.1% of capital raised last year was for core funds, 28% went to opportunity funds and 8.9% to value added funds (36.9% combined) - a rise of 23% on the equivalent amount for 2011.
