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Laxman Pai, Opalesque Asia: After a record quarter during Q4 2021 for global real estate funds, where $71.9bn was raised, 2022 has started with a pause for breath. During Q1, just $29.5bn was raised, said a study.
Preqin's Q1 2022 Real Estate Quarterly Report shows the real estate market has signs of slowing down following a record Q4 2021.
Given the strength of the end to 2021, it is unsurprising that there is a slow initial start to 2022. However, Preqin analysts do not believe this hiatus will continue throughout the year, expecting further strength over the coming quarters.
North America remained dominant, with funds targeting the region accounting for 72% of those closed by number and 63% of the aggregate capital secured. While Europe-focused funds matched the proportion of funds closed to aggregate capital raised relatively evenly (23% and 21%, respectively) those focused on Asia-Pacific accounted for 5% of fund closings by number and 16% of aggregate capital raised.
The study revealed that the biggest funds in the market continue to seek ever greater volumes of capital. During Q1 2022, 10% of funds by number were seeking 48% of targeted capital, equal to $186bn. This means a greater concentration of capital towards the largest funds has hit activity for emerging or first-time funds. Given the trends experienced in Q1, this is unlikely to be changing soon.
Meanwhile, deals activity surged in Q4 2021 but dropped sharply in Q1 2022 - returning to a l...................... To view our full article Click here
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