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Tuesday, 26 April 2016

$21Bln Raised for Real Estate Funds During 1Q

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Commercial Real Estate Direct Staff Report

Investment managers raised $21 billion of equity commitments for 44 real estate funds that closed during the first quarter, according to Preqin.

That's roughly equal to the amount raised during the fourth quarter, but down from the $29 billion raised during the first quarter a year ago. It's also well off the record $41 billion that was raised during last year's third quarter. Rockpoint Real Estate Fund V, which raised $3.3 billion, was the latest quarter's largest fund. Meanwhile, the 10 largest vehicles to close during the quarter raised $14 billion, or two-thirds of the total raised. So the remaining 34 funds that closed were relatively small at $220 million.

Preqin, a London research firm focused on the investment management business, noted that dry powder, or capital ready to be deployed, now totals $230 billion. The bulk of that is earmarked for investments in North America. Funds with an opportunistic strategy have $97 billion of capital available.

Preqin added that real estate remains a favored asset class in part because of its positive returns. Closed-end real estate funds have posted increases in their net asset values for 21 straight quarters. And since 2007, more capital has been paid out or is available in the funds themselves than has been invested in them.

It found that 492 funds are in the market, marking an all-time high. They're looking to raise a total of $175 billion. Just more than half, in both number and capital, are North American-centric, while a fifth are European-centric. The largest of the batch is Blackstone Real Estate Partners Europe V, which is aiming to raise just more than $7 billion. Brookfield Strategic Real Estate Partners II is just behind it with a $7 billion target. It has a global focus.

The funds that closed during the quarter took roughly 18 months to complete their capital-raising, which is unchanged from last year.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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