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Laxman Pai, Opalesque Asia: Real estate fundraising numbers dropped this year compared to 2021. 249 funds had closed at the end of Q3 2022, equal to 46% of the 546 funds closed throughout the whole of 2021, said a study.
What is more, the $101.9bn of aggregate capital raised by end of Q3 2022 is equal to just 48% of 2021's $210.7bn total, revealed Preqin Global Report 2023: Real Estate.
While Preqin analysts expect Q4 to bring an increase compared to the previous three quarters of 2022, they remain doubtful that the strength witnessed at the end of 2021 will be repeated this year.
"Surprisingly, first-time funds have been one of the winners in 2022. By the end of Q3 2022, first-time managers secured $10.5bn in the capital, significantly more than the $9.4bn they raised throughout the whole of 2021," the report said.
Preqin data also shows that value-added funds have been the dominant strategy throughout 2022, accounting for almost 40% of funds closed, at 99, in the first three quarters of the year - in comparison to the 2001-2021 average of 32%.
When measured by the proportion of aggregate capital raised, the value-added strategy accounts for 35% ($35.6bn), far above the 2001-2021 average of 27%.
Meanwhile, value-added funds are well placed to capitalize on repositioning older office stock, for example, toward modern ways of working. The strategy offers the ability to commit capital to significantly improve the quality and rental prospects of ...................... To view our full article Click here
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