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Private real estate fundraising momentum continues in Q3; $121bn secured so far in 2019

Thursday, October 17, 2019

Laxman Pai, Opalesque Asia:

Private real estate fundraising momentum continued in Q3; $121bn has been secured so far in 2019, keeping the year on track to break the annual fundraising record, according to Preqin.

Continuing the trend of capital consolidation, only 48 funds closed in the quarter, said Preqin in its quarterly update on real estate.

Together these funds raised $37bn, at an average of $843mn per fund, although this is tremendously skewed by the closing of Blackstone Real Estate Partners IX on $20.5bn, the report pointed out.

Funds focused on North America once again dominated the market, with 28 funds accounting for 76% of aggregate capital raised.

Investors continued to favor value-added and opportunistic strategies: 20 and 12 such funds closed respectively.

Among private real estate funds closed so far in 2019, two-thirds have either achieved or surpassed their targets.

Fund managers are also completing these raises in less time, with 88% of funds closing inside 24 months, compared to 82% in 2018.

Blackstone Real Estate Partners IX became the largest private real estate fund of all time in September.

Following in the wake of Brookfield Strategic Real Estate Partners III's $15bn closure earlier in the year, the more experienced, blue-chip fund managers are successfully attracting the majority of capital commitments.

856 funds in the market globally as of October, seek a combined $251bn from investors

After a slow star......................

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