Indirex Blog

October 2011 - Primary Capital Raises

12 November 2011

• $2.7bn was raised for twenty-six unlisted real estate funds across the globe in October 2011.
• In addition, InfraRed's third infrastructure fund was the biggest close announced during the month, declaring a raise of $1.2bn; well above its target close, and, in the States, Equity International closed their fifth real estate securities fund; with a total raising of $650mn.
• Notable closings amongst direct property funds this month included the L&G UK Property Income Fund, with a further raise of £52mn to seal their final close at a total of £300mn from 14 major international institutional investors based in the Middle East, Denmark, UK, France, Finland, Switzerland and Japan. Tristan Capital completed a second close for their Curzon Capital Partners III fund, raising over €300mn.
• There was a straight 40:60 split in funds raised between European funds and those covering the rest of the world, notably Asia Pacific, Dubai and America.
• The majority of funds raising were in the value-add or opportunity risk bracket. Only seven of the funds were core or core-plus strategy. Diversified use sector strategies dominated, although residential stood out as the other most frequent theme, followed by six funds.