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Bailey McCann, Opalesque New York: Private real estate fundraising improved slightly in the second half of 2011 but still remains significantly below 2007 levels according to new research from global research firm, Preqin. The report is the result of a survey of 180 institutional investors in private real estate funds.
In the report, Real Estate Investor Outlook 2012, Preqin cites investor caution surrounding broader market volatility as the chief cause for stubbornly low fundraising. Along with volatility, investors noted the slower rate of return from real estate investments as well as existing real estate investment commitments as reasons for staying on the sidelines.
North American investors were more active in the space than any other region in the world - with 45% of those surveyed having committed to funds in 2011, compared to 27% of European investors and 25% of Asian investors. Despite that, more than half of respondents said that they had no plans to commit to private real estate funds this year. The current investor appetite for private real estate funds is lower than it has been in two years.
New investments, such that they happen, will likely come from larger investors. These investors will be focused on core and value added strategies. 51% of investors with $10bn or more in total assets are li...................... To view our full article Click here
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