Preqin data has showed a record number of private real estate funds focusing on Latin America are currently in market, targeting an aggregate US$3.8 billion in investor commitments, as fund managers increasingly see more opportunities in the region.
Investor appetite for the region is also strong, with 2012 a record year for Latin America-focused private real estate fundraising. Eight funds reached a final close in 2012 having secured an aggregate US$3.4 billion in investor capital.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Other Key Findings:
- Latin America-focused private real estate funds accounted for 5% of aggregate capital secured by real estate funds closed globally in 2012, up from 2% in 2007.
- Domestic firms are becoming increasingly prominent in the region. Latin America-headquartered firms accounted for 52% of capital raised by Latin America-focused real estate funds closed in 2011-2012, compared to just 17% for funds closed in 2009-2010.
- PLA Residential Fund III, managed by Pramerica Real Estate Investors, is the largest Latin America-focused fund to close in the period 2008-2013 YTD, securing US$869 million in investor capital.
- Brazil is the country most commonly targeted by private real estate managers. Of the US$9.3 billion raised by Latin America-focused private real estate funds in the period 2009-2013 YTD, US$6.4 billion was raised by 17 Brazil-focused funds.
- Mexico-focused funds closed between 2009 and 2013 YTD securing an aggregate US$1.2 billion, while six pan-Latin America focused funds closed having raised US$1.7billion.
- US$2.5 billion is currently being targeted by 7 Brazil-focused real estate funds in market, accounting for 66% of total capital sought by Latin America-focused real estate funds on the road.
- Columbia-focused funds are currently in market looking to secure US$600 million in investor commitments.
- TFI-Hines Brazil Income Real Estate Fund and Tishman Speyer Brazil Fund III are the largest Latin America-focused funds currently in market, both seeking US$500 million.
Andrew Moylan, head of real assets products, Preqin, said: "There are encouraging signs for private real estate fundraising in Latin America, with a record number of funds on the road seeking capital for investment in the region. With 2012 the strongest year in terms of capital raised to invest in Latin America, the region accounts for a small but growing proportion of all private equity real estate fundraising globally.
More managers headquartered in the region are raising funds, reflecting the growing maturity of the private real estate fund industry in the region. The flow of fresh capital is likely to lead to more opportunities for developers to undertake large-scale development projects in key growth markets such as Brazil in coming years," Moylan added.
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
