The aggregate target capital of Europe-focused real estate debt funds currently in market is more than four times the amount of capital being targeted a year ago, according to new research by Preqin.
There are currently 19 Europe-focused debt funds in market, targeting aggregate commitments of EUR10.0 billion, compared with seven funds with an aggregate target of EUR2.3 billion, which were on the road in May 2012. Debt funds account for 26% of the EUR38.2 billion that is being targeted by the 117 Europe-focused funds in market.
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Other Key Findings:
- 12 Europe-focused real estate debt funds held a final close between the start of 2008 and May 2013, raising an aggregate EUR3.2 billion. This accounts for just 6% of the EUR56.8 billion that was raised by the 273 Europe-focused funds to close in the same period.
- 2011 saw five Europe-focused real estate debt funds reach a final close, raising an aggregate EUR2.5 billion in capital. This is the largest annual amount raised for real estate debt funds focused on Europe.
- The increase in the number of debt funds being marketed corresponds with increased appetite for real estate debt among
Europe-based institutional investors. Of European investors commencing new fund searches in Q1 2013, 27% were targeting
real estate debt funds, compared with 8% which were targeting debt funds in Q1 2012. - Aalto Commercial Real Estate Loan Programme is the largest Europe-focused real estate debt fund in market, targeting
GBP1.5 billion in commitments. The fund invests in senior real estate loans across Europe, with a main focus on the UK and
Germany.
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