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Komfie Manalo, Opalesque Asia: The amount of money invested by sovereign wealth funds (SWFs) into real estate continues to grow steadily according to statistics collected by data provider Preqin. The newly-launched 2017 Preqin Sovereign Wealth Fund Review also found that 64% of SWFs currently hold allocations to real estate, up from 62% in 2016 and 59% in 2015.
Consequently, more sovereign wealth funds invest in real estate and infrastructure than any other asset class. Within the real estate industry, sovereign wealth funds are primarily looking to invest directly in real estate projects, with more funds indicating a preference for direct investment than for commingled real estate funds.
Andrew Moylan, head of Real Estate Products, commented, "Real estate is a key asset class that continues to attract vast sums of capital from sovereign wealth funds. In particular, the long-term nature of real estate investments, as well as the potential for regular income, align the asset class with typical sovereign wealth fund investment priorities. In light of interest rates remaining low across many key markets globally, it is unsurprising to see many sovereign wealth funds investing additional capital in real estate to generate income, while on a domestic level real estate investment can bring significant socio-economic benefits."
The study added that the total AUM of SWFs now stands at $6.59tn, up 1% from $6.51tn a year...................... To view our full article Click here
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