Rollovers likely as first non-listed property funds exit

The wave of assets expected to hit the European property market over the next few years, due to a peak in terminations of the first generation of non-listed real estate funds, is likely to be moderated considerably, according to a new report from Inrev, the European association for investors in non-listed real estate.

Inrev says there are 90 closed-end funds with total value of EUR 49.5 bn which are due to terminate over the next three years. But a survey of fund managers and investors found that 59% of core funds are likely to roll over rather than liquidate.

Fund managers are opting for continuations because of the high interest in real estate, particularly the high-quality assets held in core non-listed funds, Inrev said.