Property fund managers achieve record equity raising in July

Real estate fund mangers raised €10.7 bn globally in July, the highest monthly volume since the 'heady days of 2007-8', Indirex has revealed.

Indirex, an online community for global unlisted real estate, said the performance was driven by a spike in the number of funds achieving a final close with additional capital raised.

Some 46 managers representing 50 funds raised a total of $14.2 bn (€10.7 bn) in July.

Five managers raised over $1 bn a piece in July. In all, they closed on nearly $12 bn. Brookfield's global fund, BSREP, led the field announcing a further $1.5 bn to close on $4.4 bn. Blackstone Real Estate Debt Strategies II (BREDS II) raked in an extra $1.4 bn, giving it a total of $3.5 bn.

In Continental Europe, 12 funds announced raisings of €2.8 bn. Fund manager Perella Weinberg Partners held the close of its second European fund with $1.7 bn (€1.3 bn), while Goodman European Logistics Fund secured €550 mln of new equity. Aviva Investors' European Secondary Infrastructure Credit Securitisation Vehicle reached a first closing at €425 mln.

Indirex recorded eight fund announcements in the UK during July. The largest saw the Berkeley Group and Wellcome Trust form a £400 mln (€466 mln) joint venture to invest in regeneration schemes. BlackRock raised £250 mln for a UK property fund and Cordea Savills closed its £200 mln London residential development fund.

Fund manager Hermes, acting on behalf of the BT Pension Scheme, formed a joint venture with Canadian pension giant CPPIIB to acquire eight Central London office assets from BTPS' existing portfolio.

CPPIB will invest £173.9 mln to acquire a 50% interest in this core-plus/value-add portfolio, with the assets primarily located in London's West End.