The Abu Dhabi Investment Authority (ADIA) plans to diversify away from realty and private equity funds by investing directly in Indian real estate, sources familiar with the matter told Reuters.
ADIA’s investments in Indian real estate to date total $400-$500 million, largely through property and private equity funds, and the fund is now scouting for direct investment opportunities, one of the sources told Reuters………………………………………..Full Article: Source

Europe has seen the smallest decline in capital available for investment in commercial real estate over the past year, despite attracting relatively low levels of new capital, according to DTZ’s ‘Great Wall of Money’ report.
The 3% decline to $108bn (€82bn) stands against a 9% global decline in capital available for investment in commercial real estate to $298bn, largely as a result of a 12% reduction in available debt………………………………………..Full Article: Source

The Ministry of Construction is considering the establishment of a housing development fund to help low-income earners become home owners. A draft plan on establishment of the fund is expected to be submitted to the Government by the end of this month.
According to the ministry’s plan, among a range of funding sources that include profits from the State lottery, the fund would also receive 10 per cent of fees for land-use rights collected from retail and residential areas along with funds from central and provincial State budgets………………………………………..Full Article: Source

The arrival of senior debt funds could provide welcome new sources of liquidity in the European property market as the banks continue to reduce their exposure to real estate lending, new research shows.
Cushman & Wakefield’s latest European real estate lending survey found that just 36 out of the 78 leading global real estate finance providers interviewed said they would be willing to lend to new customers, while a further nine would only lend to existing clients………………………………………..Full Article: Source

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The IPD Nordic Property Fund Index showed a return of 5.4% to Nordic real estate funds over 2011, well down on the 10.6% delivered in 2010, but much better than the five-year average, which was marginally negative at -0.2% per year.
Following the low point of direct property markets across Northern Europe late in 2009, a similar pattern of returns has also been seen in the UK unlisted market - as shown by the AREF/IPD UK Pooled Property Fund Index………………………………………..Full Article: Source

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………………………………………..Full Article: Source

Doug Rowlands, Head of the IPD Multi-national Team, explains that the IPD Pan- European Funds Index project is about to bear fruit. On March 16th 2012 IPD will be releasing a brand new Pan-European Funds Index, for the first time capturing the performance of funds devoted to investment across the continent.
This Index will measure full net asset value-based fund performance, as received by the investors in the funds covered, and will represent the first benchmark for this kind of fund with full analytical capacity………………………………………..Full Article: Source

Asian property funds lack transparency, nearly two-thirds of respondents of a new survey by the Asian non-listed real estate fund association ANREV have said.
In the organisation’s fifth annual Investment Intentions Asia Survey 2012, nearly 80 industry responses also showed China to be the focus of many investors’ attention, with Chinese retail units the preferred choice for both investors and fund-of-fund managers………………………………………..Full Article: Source

Wealthy investors who had put money in realty funds a few years ago are reaping rich dividends on the back of a series of profitable exits by these funds.
Leading funds HDFC PMS, Kotak Realty, Milestone Real Estate Fund and ASK Real Estate Portfolio, among others, have profitably exited about 6-12 projects between August and December 2011. Almost all these funds have logged well over 20% annualised returns on their investments at exit, wealth managers and sources said………………………………………..Full Article: Source

Canada Pension Plan Investment Board (CPPIB) has agreed to a nearly $5bn (€3.8bn) joint venture with Westfield that will see it acquire a portfolio of 10 malls in its largest single real estate transaction.
The agreement, covering 10 regional malls as well as two redevelopment sites in the Australian company’s US portfolio, comes at the same time as the Canadian scheme entered a 50:50 joint venture with Land Securities to develop a retail, office and residential site in central London………………………………………..Full Article: Source

Based on key investors’ confirmed divestment and investment intentions, Jones Lang LaSalle Corporate Finance (JLLCF) estimates that the global transaction market for secondary real estate funds is set to grow by up to 30% in 2012 as institutional investors are increasingly considering the secondary market as a viable exit route.
In 2011, $5.5 billion of secondary market real estate opportunities transacted globally, out of a total of $14 billion of offered product. This was an increase of 55% compared to $3.5 billion of transacted volumes in 2010. Over 30% of transactions in 2011 took place in the UK………………………………………..Full Article: Source

The Canada Pension Plan Investment Board is making a whopping $1.8-billion investment in shopping malls in the U.S. with a new joint venture agreement with the Westfield Group in its biggest real estate deal to date.
The pension manager said Tuesday it will take a 45 per cent stake in the joint venture that will include interests in 10 regional malls and two redevelopment sites south of the border. Most of the properties are in California………………………………………..Full Article: Source

Non-listed funds propelled French real estate investment volumes into second place behind the UK in the last two calendar months, according to data on the most active European markets at the turn of the year from PropertyEU Research.
Fund managers like AEW Europe, La Francaise Real Estate Managers and BNP Paribas Real Estate each sealed a clutch of large deals in France during the period from December 2011 to end-January 2012 when PropertyEU recorded a volume of EUR 4.18 bn………………………………………..Full Article: Source

Kay Herr and Jason Ko co-manage the JP Morgan Realty Income Fund, which has roughly $450 million under management and looks for current income from equity real-estate investment trusts, or REITs.

“REITs fit on the spectrum between equity and fixed income,” Herr said. “They have the high dividend yield of fixed income, and about two-thirds of income has come from dividend, but on the equity side you… get growth when the leases roll over.”………………………………………Full Article: Source

Property fund managers could be the next group in financial markets to fill the partial credit vacuum as banks reduce lending, according to the chief executive of international real estate fund managers Cordea Savills.
Private equity managers, government agencies and even hedge funds have become lenders to credit-starved businesses, and other borrowers unable to obtain credit through traditional channels since 2008………………………………………..Full Article: Source

Germany and Scandinavia are the most favored investment locations in Europe for unlisted real-estate funds because money managers perceive them as more likely to weather the recession threatening the region, according to survey published today.
German retail properties were the top pick for a second year in an annual survey of 121 investors and money managers by the European Association for Investors in Non-Listed Real Estate Vehicles, or Inrev. The respondents own or manage 1.66 trillion euros ($2.16 trillion) of assets. Around 64 percent of them said German retail is their preferred location and industry………………………………………..Full Article: Source

Blackstone Group LP (BX) secured more than $6 billion of pledged capital for a new real estate fund that will buy mainly distressed-property assets, said two people with knowledge of the fundraising.
The New York-based buyout firm plans to raise at least $10 billion for the fund, known as Blackstone Real Estate Partners VII, said the people, who asked not to be identified because the capital-raising is private. Blackstone expects the vehicle to be fully funded this year, they said………………………………………..Full Article: Source

Calpers, the giant California pension fund, is dumping one of its last major housing investments at a big loss.
In a major step toward winding down a two-decade program as the pension world’s biggest player in the U.S. housing market, Calpers is selling a portfolio of 28 housing communities to a partnership between San Diego-based developer Newland Real Estate Group LLC and an affiliate of Japan’s largest home-building company, Sekisui House Ltd………………………………………..Full Article: Source

Two of Canada’s biggest pension funds said Wednesday they acquired a combined 49% stake in a shopping center in Rio de Janeiro for C$80 million, further bulking up their real estate holdings in Brazil.
Ivanhoe Cambridge, the real estate arm of Caisse de depot et placement du Quebec, and Toronto-based CPP Investment Board acquired the stake in Botafogo Praia Shopping center from Brookfield Brasil Shopping Centers, an arm of Brookfield Asset Management (BAM), an asset manager based in Toronto………………………………………..Full Article: Source

Unlisted property funds outperformed equities and property REITs in 2011, but fell short of the returns delivered from direct commercial property over the year, according to the AREF/IPD UK Pooled Property Fund Index (UK PPFI).
Pooled property funds delivered 1.2% in Q4 2011, as returns continued to slow, delivering an annual return of 7.1%. Direct commercial property, measured by the IPD UK Monthly Index, returned 8.1%, equities -3.5% and property REITs -8.8%………………………………………..Full Article: Source

China’s fledgling real estate investment fund market could see a surge of activity in 2012 as property developers launch their own vehicles in a desperate bid to bridge an estimated $111 billion financing gap in the year ahead.
A government-led clampdown on bank, bond, equity and trust market financing for real estate has left developers with little choice other than to set up their own funds, which have raised barely 10 percent of the sum in the past two years that needs to be found to refinance maturing debt in 2012………………………………………..Full Article: Source

Mutual funds that invest in real estate investment trusts paid off in a big way for investors last year — as long as they stayed within the United States. The average domestic real estate mutual fund returned more than 6% last year, about 400 basis points more than the S&P 500.
The performance helped push assets in real estate mutual funds to $53 billion, from $46 billion in 2010. The picture outside the United States wasn’t as rosy. Global real estate funds lost an average of 10% last year………………………………………..Full Article: Source

Sovereign wealth funds from Asia may have led the push into the London office market in 2011 but a diverse range of Asian investors is gearing up to gain a foothold there this year.
‘High-net-worth individuals and families from Malaysia and Indonesia are also looking for exposure to London offices,´ James Beckham, director - city investment at Jones Lang LaSalle, said………………………………………..Full Article: Source

German fund KanAm is in talks with at least two bidders for part or all of a 1 billion pound ($1.6 billion) portfolio of four London properties that include Deutsche Bank’s UK base, a source close to the process told Reuters.
The sale by the German open-ended fund also includes buildings occupied by the European Bank for Reconstruction and Development and Thomson Reuters, underlining the strength of London’s safe haven appeal for real estate investors………………………………………..Full Article: Source

Dutch pension fund BpfBOUW has gained exposure to the Australian real estate market for the first time by investing in three existing core funds. The €31bn pension scheme for the Dutch building industry is carrying out a strategy to increase the global diversification of its property portfolio.
It already has investments in the Asia Pacific, including Singapore, Hong Kong, Japan and China, as well as a small exposure to India and South Korea………………………………………..Full Article: Source

Despite the deletion of the new clause in the foreign direct investment (FDI) policy prohibiting put options, offshore real estate funds are looking to set up non-banking financial companies (NBFCs) to actively invest in the sector.
“We are currently advising several offshore clients on setting up realty specific NBFCs,” said Ruchir Sinha, co-head of real estate investments practice at law firm Nishith Desai Associates. He declined to reveal the names of the firms because of client confidentiality issues………………………………………..Full Article: Source

Korean investors, faced with a dearth of reliable assets, are shifting their eyes toward the real estate investment funds. Local real estate funds have drawn a total of 13.2 trillion won ($11.4 billion) as of Jan. 5, up from 7 trillion won recorded in September 2008, according to the data by the Korea Finance Investment Association.

The tally covers money from both public and private sector, underscoring that the trend is a reflection of a broader trend in favor of new investment instruments at a time when existing tools are saddled with low returns and gloomy outlook…………………………………….Full Article: Source

Private equity real estate funds face a challenging fundraising landscape in 2012 as investors grow more cautious about coughing up fresh capital amid growing global economic uncertainty, Preqin said on Thursday.
The research firm’s December survey of 180 institutional investors from North America, Europe and Asia found 53 percent do not expect to make new commitments this year, while 11 percent said they might considering doing so………………………………………..Full Article: Source

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Carlyle Group said it has raised $2.34 billion for its sixth U.S. real-estate fund, which, like its predecessors, will make opportunistic investments in major cities across North America.
The fund, Carlyle Realty Partners VI, is one of the largest since the property bubble burst in 2008. But it has had to cut fees and offer other unusual incentives to lure investors to the fund, which was initially targeted to raise $2 billion, and then increased……………………………………….Full Article: Source

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Real estate had an excellent year last year. Assuming, of course, your mutual fund owned it. In an otherwise awful year, real estate funds gained an average 7.6%, vs. a 2.9% loss for the average stock mutual fund, according to Lipper.
This may seem puzzling to homeowners: The Federal Reserve estimates that homeowners have watched $7 trillion evaporate since the housing bubble burst in 2006………………………………………..Full Article: Source

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Red Fort Capital, an India-focussed real estate private equity firm, is set to raise $500 million fund that will invest in commercial and residential assets in Asia’s third-largest economy, two sources with knowledge of the matter told Reuters.
The company is in the final stages of fund raising, at a time when global fund raising markets are besieged by economic growth concerns, and will formally announce a “closure soon”, said the sources, who declined to be named as they were not authorised to speak to the media………………………………………..Full Article: Source

Don’t just visit it – buy it. What does it mean when Potsdamer Platz is up for sale but buyers are hard to come by?
Last Monday, DWS Investment liquidated its €257 million DB ImmoFlex fund of funds. Two other frozen funds worth around €6 billion each, Credit Suisse’s CS Euroreal fund and the SEB ImmoInvest fund, face a May deadline to reopen as they search for buyers of Europe’s most famous landmarks………………………………………..Full Article: Source

Vietnam’s once-frenzied property market has ground to a halt, leaving local developers limping and international investors salivating at the chance of snapping up distressed deals.
With poorly-capitalized local developers struggling to complete projects, foreign funds say this is the opportunity they have been awaiting since the global financial crisis began………………………………………..Full Article: Source

The committee monitoring real estate investment has blacklisted more than 120 real estate fund owners for alleged involvement in real estate scams and fraudulent practices.
Hassan bin Fadl Aqeel, undersecretary for domestic trade at the Ministry of Commerce and Industry and spokesman for the committee, said these citizens included those wanted by the authorities as well as those banned from traveling………………………………………..Full Article: Source

A report published by law firm Nabarro suggests investors willing to cornerstone new funds can effectively dictate their own terms – and in some cases may exercise a veto over subsequent investors.
The poll of 195 fund managers and investors found 62.2% of investors favour direct ownership, 62.1% favour joint ventures, and 43.2% favour club deals………………………………………..Full Article: Source

Vietnam’s once-frenzied property market has ground to a halt, leaving local developers limping and international investors salivating at the chance of snapping up distressed deals.
With poorly-capitalized local developers struggling to complete projects, foreign funds say this is the opportunity they have been awaiting since the global financial crisis began………………………………………..Full Article: Source

With the sovereign debt crisis at its peak in Europe and the USA and the volatility of capital markets persisting, Asian real estate markets have slightly been forgotten lately. Although the first signs of uncertainty have started to emerge on the Asian continent as well, with listed real estate companies trading at discounts, real estate fundamentals remain largely sound.
From the macro-economic perspective, Asian giants, China and India, continue to enjoy GDP growth rates of 9.1% and 7.7% respectively in Q3 2011 while other significant markets such as Singapore and Hong Kong also witnessed GDP growth of 6.1% and 4.3% respectively in Q3 2011………………………………………..Full Article: Source

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Three German funds facing a May deadline to avoid liquidation aim to raise about 2.7 billion euros ($3.6 billion) selling trophy real estate including Berlin’s Potsdamer Platz and the European Bank of Reconstruction & Development’s London headquarters.
Property mutual funds run by KanAm Grund KAG and the asset- management arms of Credit Suisse Group AG and Skandinaviska Enskilda Banken AB, or SEB, must open for withdrawals in May after they were frozen in May 2010. The funds, with combined holdings of 16.4 billion euros, must liquidate if they can’t raise sufficient cash to cover redemptions………………………………………..Full Article: Source

INREV’s recent Capital Sources Survey, suggests a significant structural shift in the balance between debt and equity capital – the main sources of funding for non-listed real estate investment. But, in all, capital is reducing as a result of the financial crisis.
Debt finance, in particular, has taken a battering leaving a significant funding gap, as lenders seek to de-leverage and restore their loan books to 2004 pre-boom debt levels………………………………………..Full Article: Source

With a record number of funds on the road, and a smaller proportion of investors keen to make new commitments, conditions are set to remain tough for real estate managers, Preqin said in a recent research report.
There are currently 454 funds in market seeking a combined $159 bn (EUR 119 bn), up from 403 funds targeting $138 bn at the same time last year. The number of investors planning to invest, meanwhile, has declined from 45% to just over one-third, meaning that the fundraising market will be extremely competitive………………………………………..Full Article: Source

After five consecutive quarters of growth cross border European property funds saw returns fall to -0.2% in Q3 2011, according to the IPD Pan European Property Funds Index.
“The ongoing euro zone contagion fears have led to some writing down of the value of some assets,” said Doug Rowlands, Associate Director at IPD………………………………………..Full Article: Source

Nordic property funds delivered -2.3% total return in Q3 2011, and 9.0% for 12 months, according to the IPD Nordic Property Fund Index (NPFI), released by IPD yesterday (December 1, 2011). The IPD NPFI measures Net Asset Value total returns from one valuation to the next. This is the third release of the IPD NPFI.
“The overall negative return delivered by the funds in the index is the first indication of the impact of the euro zone crisis on the Nordic property market,” explained Christina Gustafsson, Managing Director at IPD Norden………………………………………..Full Article: Source

Nordic property funds delivered -2.3% total return in Q3 2011, and 9.0% for 12 months, according to the IPD Nordic Property Fund Index (NPFI), released by IPD yesterday (December 1, 2011). The IPD NPFI measures Net Asset Value total returns from one valuation to the next. This is the third release of the IPD NPFI.
“The overall negative return delivered by the funds in the index is the first indication of the impact of the euro zone crisis on the Nordic property market,” explained Christina Gustafsson, Managing Director at IPD Norden………………………………………..Full Article: Source

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The number of German open-ended property funds (GOEFs) that are forced into liquidation is likely to increase in the wake of new financial regulations such as the Alternative Investment Fund Managers Directive (AIFM).
Under the regulation, which is due to be implemented in January 2013, funds will be forced to increase liquidity and will also be supervised more strictly………………………………………Full Article: Source

Pre-crisis property fund structures developed in the boom years are no longer fit for purpose in the post-crisis environment, according to PwC.
The firm’s survey of 30 European vehicles claims new types of funds designed for specific kinds of investors will emerge with the market recovery, including arrangements that “blur the boundaries between what was traditionally regarded as the fund and what was traditionally regarded as a segregated account”………………………………………..Full Article: Source

Asian investors will soon be able to buy a yuan-denominated convertible bond targeted at Australia’s commercial and residential property sector.
Meeting the increasing appetite for “dim sum” bonds, Agincourt Capital plans to raise the equivalent of US$500 million in renminbi in the next six to nine months before tapping investors for another US$500 million in 2013………………………………………..Full Article: Source

Vehicles targeting core assets account for the overwhelming majority of the European real estate fund industry, reflecting an increasing risk aversion among fund managers and investors, according to new research from advisory firm Swisslake.

The research indicates that fund managers are increasingly launching core funds to offset the risks created by the financial crisis and to cater for changing investor demands……………………………………..Full Article: Source

The Norwegian Government Pension Fund Global will scout larger deals than previously in a bid to meet its 5% real estate allocation target, according to Øystein Sjølie, a spokesman at Norges Bank Investment Management, which manages the NOK3trn (€388bn) oil fund.

His comments follow the announcement that the fund would acquire a €290m three-asset prime Paris office portfolio from SEB ImmoInvest by the end of the year – its second deal via a joint venture with AXA Real Estate, which will manage both portfolios………………………………………Full Article: Source

CBRE Global Investors, manager of $94.8 billion of real estate assets, may make its first investment in China’s housing market in four years in anticipation the government will start easing its property curbs.

The unit of the world’s largest commercial real estate brokerage is in talks with Chinese partners and local governments and plans to buy a site for residential development by the second quarter of next year, Greater China Country Manager Richard van den Berg said………………………………………Full Article: Source

The French Public Service Additional Pension Scheme (ERAFP) is seeking to launch two new real estate funds targeting properties in France and Europe as part of its plan to diversify its portfolio.
In an interview with IPE, Catherine Vialonga, chief investment officer, said the pension fund had recently awarded asset manager AEW Europe SGP a €40m real estate mandate and would consider further investments in the future………………………………………..Full Article: Source

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