Indirex Blog

January 2012 - Primary Capital Raises

07 February 2012

• $8.1 billion was reported as raised for unlisted real estate funds around the world during January 2012.
•    The USA  continued to take the lion's share of cash raised – over 29% with Starwood Distressed Opportunity Fund IX holding a first close of $1.2bn. The next largest raises were DivcoWest Real Estate Fund III which held its final close on $871m and Related Real Estate Recovery Fund raising $825 in a first close.
•     There was notable activity in Asia (around 16%) with Fortress Japan Opportunity Domestic Fund II holding a first close of $550m and Red Fort India Real Estate Fund II holding a final close of $500m. Also SEB Asset Management launched two (Asian) funds.
•    Europe (accounting for 20%) reported nine funds raising capital with the largest single close being AXA Development Venture III holding a final close of €589m. Union Investment announced they had raised €600m for two new funds.
•    In the UK the most notable raising announced was Townsends £35m investment in to Threadneedle Low-Carbon Workplace Trust. First Property Group announced the launch of their Fprop Sterling Income Fund (FSIF) looking to raise £100m.
•    26 of the 34 funds raising capital this month have a non-core strategy (16 Value-Add funds and 10 Opportunity funds). 8 of the remaining were core including two core-plus.
•    Of these 34 funds just over half of them have a Diversified investment focus with Debt, Retail and Office funds being the favoured targeted sectors, in line with what we saw in December.