So far in 2014, over 21bn has been raised by Europe-focused private real estate funds, almost twice the 11bn raised throughout the whole of 2013, according to Preqin.
2014 has witnessed the largest amount of capital raised by Europe-focused funds since 2007, demonstrating an overwhelming growth in appetite for European real estate, and opportunistic or distressed opportunities in particular.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Over 21bn has been raised so far this year for Europe-focused real estate funds, more than in any other year except 2007, when 23bn was raised.
As a result of the significant growth in European fundraising over the past 12 months, dry powder for Europe-focused funds currently stands at an all-time high of 52bn – a 44% increase on December 2013.
Private Real Estate Fundraising Key Facts:
- 44% of global capital raised in 2014 YTD is for Europe-focused funds, up from 17% of capital raised in 2013.
- Opportunistic and distressed are the two most prominent Europe-focused fund types raised in 2014 YTD, with funds of these strategies raising a combined 12.3bn.
- Over half (55%) of capital raised for Europe-focused funds so far this year is from non-Europe headquartered managers, significantly more than the 26% of capital raised in 2013.
- A quarter of North America-based institutional investors are currently targeting Europe-focused real estate funds, up from 16% in 2013.
- Blackstone Real Estate Partners Europe IV became the largest ever solely Europe-focused fund when it closed on 5.1bn in March 2014, while 50% of the $7.2bn Lone Star Fund IX, which closed in July, is expected to be invested in Europe. (Re-opened to existing investors, with an additional target of 1.5bn.)
- The average time taken for Europe-focused real estate funds to reach a final close in 2014 has been 16 months, compared to 19 months for North America-focused funds.
Andrew Moylan, head of real assets products, said: "The European real estate market is awash with capital following the strongest fundraising year for the region since 2007. Total capital raised for the region has exceeded 20bn so far this year, a level of capital not seen during an entire year of European fundraising since before the global financial crisis.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Also notable is the return of many of the largest US private equity firms to Europe. Over half of the capital that has been raised this year has come from non- Europe-based managers, with the likes of Blackstone Group, Lone Star Funds and Starwood Capital Group all targeting European opportunities. With many commentators highlighting the wealth of distressed opportunities across the continent, this large amount of capital does have the potential of driving up asset valuations and ensuring that deal-making is highly competitive."
