Finding office space and setting up trading floors used to be the limit of hedge funds' interest in real estate. This changed dramatically over the last five years as the funds saw real estate as a terrific vehicle for diversifying their portfolios and capitalizing on booming markets.
For hedge funds real estate is relatively safe, requiring miniscule resources compared to a traditional investment play. But many hedge funds are finding that even “cash flowing” real estate has unforeseen risks and costs they never expected. Real estate should be able to earn its keep in a fund's portfolio— and it has a better chance of doing this if practitioners can learn from the five most common mistakes these investors make when investing in real estate.
Focusing on cash flow instead of the asset
It has long been said that real estate is entirely different than any other asset. Some funds don't believe the adage. They should.
Experienced real estate investors are generally asset-focused. In contrast, hedge fund analysts focus on the cash flows and financial models. But cash flow modeling—which serves these investors so well in all their core acquisitions—fails to capture the asset's competitive position in a changing market.
Cash flow modeling doesn't account for unquantifiable factors, such as the approval process required for new construction or redevelopment projects—and the inevitable delays that dramatically impact costs. Traditional financial analysis also doesn't factor in the almost certain, yet unpredictable, hiccups that come with any real estate deal: A simple change in local government or zoning is a potential death knell for any project.
Funds also apply standard lease-up assumptions about office tenant retention costs and market average rents that fail to account for how a specific asset will perform in a post-bust climate. Funds are learning the hard way that many assets don't achieve the average. Less competitive properties suck wind if they have tired exteriors and interiors; dated technology and systems (such as air conditioning and small, slow elevators) ; or are “parking-challenged.” Add larger than anticipated rent concessions to compensate, and what was believed to be a “good buy” quickly becomes a loser.
Believing that the rent rolls never change
Applying standard lease analysis can lead to a false sense of security: The conclusion that the rent roll will not materially change since it's been thoroughly scrubbed, stressed and subjected to “market” assumptions. But real estate analysts know the truth: Rent rolls can-and do-change, no matter the history of a property or the quality of the tenant.
Recently we arranged capital for the acquisition of a vacant office tower in Austin. The tower previously had been fully occupied by government agencies. Certain issues were obvious: The interiors looked, well, like they'd been occupied by government agencies and the building also required extensive exterior improvements as part of a “branding” plan to reintroduce the property to brokers and tenants. This was the cornerstone, and really the key part of the business plan for this asset—an element that couldn't be discovered from rent roll analysis and wouldn't be properly budgeted for by using standard leasing and improvement assumptions.
Assuming all real estate risk is the same
One property sector that has attracted plenty of fund attention is land development—the process of acquiring raw land and obtaining “entitlements,” or the right to build on it. The strategy can offer high returns, especially when the developer has a good track record. But as every experienced real estate investor knows, when a developer promises to deliver the necessary zoning approvals, one can't count on them always coming through—even if the mayor is an investor.
In one recent scenario, a hedge fund made a $10 million investment in the development of a fully approved, master-planned community with single-family homes. The plan had been to sell the lots to different builders for development and sale to homebuyers. Weakening market conditions forced the developer to do the build-out and sales directly to the endusers. While the project was no less viable, the entire budget changed. More importantly, the project's timeline was greatly extended and, by taking on vertical construction and end-user sales, the developer would be taking on far greater risk than originally intended.
While risk is greatest in new development, each asset class has its own risk profile. The solution that we've found in many cases has stemmed from a “back-to-basics” approach, working with each fund to develop their particular “risk-and-reward” view and then tailor the structure accordingly.
For instance, in a recent residential condominium development, the hedge fund's overriding concern was construction cost overruns. Given the developer's financial capability, we advised the fund to consider giving up some of the upside potential for some downside risk protection—this lead to a structure in which the developer provided construction cost guarantees well above the norm. The fund received these enhancements plus a preferred—albeit lower—return and the developer received a greater share of the back-end profits.
Thinking the work is done when the deal closes
Some large hedge funds have created real estate investment divisions staffed with experienced professionals. These companies are the exception, not the rule.
Traditionally, hedge funds are lean machines. It's not unusual to find an investment platform run by three people with a five-person staff. Their experience has been that once a trade closes, the heavy lifting is over. Nothing in the non-distressed bond or public equity markets has prepared them for managing an active real estate investment.
Real estate investments require ongoing time, energy, focus and resources. The potential re-flagging of a hotel property mandates days or weeks of due diligence, paperwork and approvals. A straightforward investment in an office building can lead to hours spent approving leases—continuing for months after the acquisition is completed. New construction generally involves innumerable redesigns, revised budgets and contractor agreements. As a result there is an immeasurable cost associated with ongoing real estate asset management with which hedge fund executives can find themselves saddled.
We can't tell our funds that they're understaffed for an investment that they want to do, but we can zero in on the issues that will likely create drag on the fund—and ultimately the sponsor.
One of our recent hotel transactions involved a sponsor group which hadn't worked with institutional partners before and a fund which had never invested in this asset class. We spent considerable time working with the sponsor to get their systems in order, making sure they understood the “major decisions” and discussing likely scenarios, such as approval of large construction contracts, draw requests and changes to room rates, personnel and food and beverage services.
FUNDS IN MARKET/COMING TO MARKET
FUND | FIRM | HEADQUARTERS | STRATEGY | TARGET (M) |
Global funds | ||||
N/A | Alpha Real Capital | London | Europe/Asia diversified | €400 |
Beacon Capital Strategic Partners V | Beacon Capital | Boston | US/Europe diversified | $3,000 |
Blackstone RE Partners VI | The Blackstone Group | New York | Global diversified | $8,000 |
Colony Investors VIII | Colony Capital | Los Angeles | Global diversified | $2,000 |
Contrarian Real Estate Fund | Contrarian Capital | Stamford (CT) | US/Europe distressed | $250 |
DLJ Real Estate Partner IV | Credit Suisse | New York | Global diversified | $2,000 |
GoldenTree In Site Partners Oppty Fund | Golden Tree InSite Partners | New York | Global diversified | $500 |
Lehman Brothers Real Estate Partners III | Lehman Brothers | New York | Global diversified | $3,000 |
Lone Star Fund VI | Lone Star Funds | Dallas | Global diversified | $6,000 |
Macquarie Global Property Fund III | Macquarie Global Property Advisors | Hong Kong | Asia/Europe diversified | $3,500 |
N/A | Perella Weinberg Partners | New York | Global diversified | N/A |
Rockpoint Real Estate Fund III | Rockpoint | San Francisco | Global diversified | $2,000 |
Walton Street Real Estate Fund VI | Walton Street Capital | Chicago | US/Europe diversified | $2,500 |
WCP Real Estate Fund I | Westport Capital Partners | Westport (CT) | Global diversified | $500 |
Westbrook Real Estate Fund VII | Westbrook Partners | New York | Global diversified | $1,250 |
Global funds subtotal | $35,036 | |||
North America funds | ||||
AEW Value Investors II | AEW | Boston | US diversified | $500 |
AG Realty Fund VI | Angelo Gordon | New York | US diversified | $500 |
Avenue Real Estate Fund | Avenue Capital | New York | US distressed | $300 |
Blackacre Institutional Partners | Blackacre | New York | US distressed | N/A |
Black Creek Mexico Residential Fund | Black Creek Group | Denver | Mexico diversified | $500 |
Brascan Real Estate Opportunity Fund | Brascan | New York | NA diversified | $1,000 |
Broadway Real Estate Partners III | Broadway Partners | New York | US office | $1,000 |
Buchanan Fund V | Buchanan Street Partners | Newport Beach | Global diversified | $400 |
Canyon Johnson Urban Fund III | Canyon Johnson | Los Angeles | US urban diversified | $750 |
Capri Urban Investors | Capri Capital Partners | Chicago | US urban diversified | $1,200 |
Carlyle Realty Partners V | The Carlyle Group | Washington DC | NA diversified | $1,500 |
CASA Partners IV | Henderson Global Investors | Chicago | US multi-family | $300 |
Richard Ellis | Richard Ellis | Los Angeles | US diversified | $1,000 |
Ceres Realty Fund II | BlakelyStern Investment Advisors | New York | US northeast diversified | $100 |
CityView LA Urban Land Fund I | American CityVista/Saybrook Capital | San Antonio (TX)/Santa Monica (CA) | California development | $150 |
Clarion Development Ventures III | ING Clarion Partners | New York | US development | $350 |
CIM Urban Real Estate Fund III | CIM Group | Los Angeles | California diversified | $750 |
CREF IV | Calare Properties | Hudson (MA) | US northeast diversified | $30 |
Crown Capital Opportunities Fund | Crown Capital | St. Louis | US diversified | $200 |
N/A | Crescent Hotels and Resorts | Fairfax (VA) | US hospitality | $350 |
Cronus Capital Fund I | Cronus Capital | New York | US diversified | $200 |
Colony Realty Partners II | Colony Capital | Los Angeles | Global diversified | $1,000 |
Concierge Apartment Fund | Concierge Asset Managment | Tiburon (CA) | US multi-family | $250 |
Cornerstone Apartment Ventures III | Cornerstone Real Estate Advisors | Hartford (CT) | US residential | $400 |
Crocker Partners IV | Crocker Partners | Boca Raton (FL) | Global diversified | $300 |
DRA Growth & Income VI | DRA Advisors | New York | US diversified | $1,250 |
Dunmore Capital Fund | Dunmore Capital | Sacramento (CA) | California development | $200 |
Embarcadero Capital Partners Fund II | Embarcadero Capital | San Francisco | US office | $400 |
Fidelity Real Estate Growth Fund III | Fidelity | Boston | US diversified | $750 |
Fremont Strategic Property Partners III | Fremont Realty Capital | San Francisco | US diversified | $750 |
Green Courte Real Estate Partners II | Green Courte Partners | Lake Forest (IL) | US diversified | $225 |
Guardian Realty Fund III | Guardian Realty Investors | Bethesda (MD) | Mid-Atlantic diversified | $500 |
Hampshire Partners Fund VII | Hampshire Partners | Morristown (NJ) | US diversified | $350 |
Hanover Real Estate Pertners III | Hanover Financial | Los Angeles | Western US diversified | $250 |
Hearthstone Path of Growth II | Hearthstone Advisors | San Rafael (CA) | US development | $500 |
Heitman Value Partners II | Heitman | Chicago | Global diversified | $800 |
Henderson Manager of Partners Fund | Henderson Global Investors | Chicago | Global diversified | $200 |
HG Capital VII | HG Capital | Menlo Park (CA) | Western US diversified | $65 |
House Investment RE Opportunities Fund IV | House Investments | Indianapolis | US development | $30 |
Hudson Real Estate Fund IV | Hudson Realty Capital | New York | US diversified | $300 |
Hunter Chase Real Estate Opportunity Fund | Hunter Chase | Irving (TX) | US diversified | $250 |
ING Lion Mexico Fund | ING Clarion Partners | New York | Mexico diversified | $500 |
Intercontinental Fund IV | Intercontinental | Boston | Value-added US diversified | $250 |
InvestLinc Real Estate Capital 3 Fund | Investlinc Group | Chicago | US diversified | $150 |
Invesco Real Estate Fund III | Invesco Real Estate | Dallas | US diversified | $500 |
Jamestown Coinvest IV | Jamestown Properties | Atlanta | Southeast US diversified | $500 |
JBC Opportunity Fund III | John Buck Co. | Chicago | US diversified | $300 |
JER Real Estate Partners IV | JER Partners | McLean (VA) | US diversified | $1,250 |
KBS Best Property Fund II | KBS Realty Advisors | Newport Beach (CA) | US diversified | $500 |
Kelly Capital Real Estate Special Situation Fund | Kelly Capital | San Diego | US diversified | $100 |
Kimpton Hospitality Partners II | Kimpton Hotel | San Francisco | US hospitality | $300 |
KMF Senior Housing Investors Fund | KMF Senior Housing Investors | Chicago | US senior housing | $250 |
LaSalle Canadian Income & Growth Fund II | LaSalle Investment Management | Chicago | Canada diversified | $350 |
LaSalle Medical Office Fund II | LaSalle Investment Management | Chicago | US medical office | $350 |
Lazard Freres Strategic Realty Investors III | Lazard Freres & Co. | New York | US healthcare | $500 |
LBA Realty Fund III | LBA Realty | Irvine (CA) | US office/industrial | N/A |
Lexin AmTrust Real Estate Partners II | Lexin Capital | New York | US residential | $150 |
Los Angeles Development Partners | Chadwick Saylor | Los Angeles | Southern California urban | $150 |
Macfarlan Special Situations Fund | Macfarlan Capital Partners | Dallas | US distress | $300 |
MacFarlane Urban Realty Partners | MacFarlane Partners | San Francisco | US urban diversified | $1,000 |
N/A | MayfieldGentry Realty | Detroit | US urban diversified | $150 |
Market Street Capital | DivcoWest | San Francisco | US office | $650 |
Miller Global Fund V | Miller Global Properties | Denver | US diversified | $400 |
N3 Opportunity Fund I | N3 Realty Advisors | Forth Worth (TX) | US diversified/retail development | $50 |
Urban Strategy America Fund | New Boston Fund | Boston | US urban redevelopment | $200 |
O'Conner North American Property Partners | O'Conner Capital Partners | New York | North American diversified | $750 |
Palisades Distressed/Value-Added Fund | Palisades Financial | Englewood Cliffs (NJ) | US diversified | $200 |
Genesis Workforce Housing Fund | Phoenix Realty | New York | Los Angeles residential | $175 |
Metropolitan Workforce Housing Fund | Phoenix Reality | New York | US residential | $250 |
Praedium Fund VII | Praedium Group | New York | US diversified | $700 |
FUNDS IN MARKET/COMING TO MARKET
FUND | FIRM | HEADQUARTERS | STRATEGY | TARGET (M) |
PLA Industrial Fund II | Prudential Real Estate Investors | Parsippany (NJ) | Mexico industrial | $140 |
PLA Residential Fund II | Prudential Real Estate Investors | Parsippany (NJ) | Mexico residential | $400 |
Prudential Senior Housing Partners III | Prudential Real Estate Investors | Parsippany (NJ) | US senior housing | $300 |
RCG Longview Equity Fund | Ramius Capital Group | New York | US diversified | $300 |
Sarofim Multifamily Fund I | Sarofim Realty Advisors | Dallas | US residential | $150 |
Savanna Real Estate Fund I | Savanna Partners | New York | East Cost diversified | $400 |
Sentinel Realty Partners VII | Sentinel Real Estate Corporation | New York | US diversified | $200 |
Somera Realty Value Fund II | Somera Capital | Santa Barbara (CA) | US diversified | $300 |
Square Mile Fund I | Square Mile Capital Management | Greenwich (CT) | US distressed | $300 |
Stillwater Real Estate Partners Fund | Stillwater Capital | New York | US residential | $50 |
Stockbridge Real Estate Fund III | Stockbridge Capital Partners | San Mateo (CA) | US diversified | $3,000 |
Strategic Office Fund I | NNN Realty Advisors | Santa Ana (CA) | US net-leased office/retail | $250 |
Stratford Lane Fund III | The Stratford Company | Tacoma (WA) | US land | $300 |
TA Associates Realty Fund VIII | TA Associates | Boston | US diversified | $900 |
Tishman Speyer Real Estate Venture VII | Tishman Speyer | New York | US diversified | $2,000 |
Thor Urban Retail Fund II | Thor Equities | New York | US retail | $500 |
Urdang Value Enhancement Fund VI | Urdang Capital Mgmt. | Plymouth Meeting (PA) | US diversified | $450 |
Williams Opportunity Fund | Williams Realty Advisors | Atlanta | US diversified | $120 |
North America funds subtotal | $42,085 | |||
Europe funds | ||||
N/A | AIB Capital Markets | Dublin | Poland diversified | €100 – €150 |
Arminius Real Estate Opportunity Fund | Arminius Advisors | Frankfurt | Germany distressed | €300 |
Capmark UK Realty Partners Fund | Capmark Financial | Horsham (PA) | UK diversified | €250 |
Carlyle Europe Real Estate Partners III | The Carlyle Group | Washington DC | European diversified | $1,500 |
N/A | Catalyst Capital | London | Europe diversified | €500 |
CBRE Strategic Partners Europe Fund | CB Richards Ellis Investors | Los Angeles | Europe diversified | €600 |
CBRE Strategic Partners UK Fund | CB Richards Ellis Investors | Los Angeles | UK diversified | £300 |
Colony Europe II | Colony Capital | Los Angeles | Europe diversified | €500 |
Corestate German Residential | Corestate Capital | Frankfurt | Germany residential | €4,000 |
Elgin Capital Fund | Elgin Capital | Dublin | Berlin residential | €60 |
EPI Baltic I | EVLI Bank | Helsinki | Baltic states diversified | €100 – €150 |
European Continental RE Fund | Clearbrook Capital Partners | London | Europe diversified | £1,000 |
Global Property Fund | Global Finance | Athens | Balkan development | $150 |
Heitman European Property Partners IV | Heitman | Chicago | Europe diversified | €500 |
Hines European Development Fund | Hines | Houston | Europe development | $430 |
Italian Opportunities II | Cordea Savills | London | Italy diversified | €300 |
LaSalle UK Venture Funds | LaSalle Investment Managment | Chicago | UK diversified | €2,200 |
MIL Equity Partners | EquityInvest | Boston | Central/Eastern Europe diversified | $100 |
Moor Park Real Estate Fund | Moor Park Capital | London | Europe diversified | €1,200 |
Central European Industrial Fund | Morley Fund Mgmt/Teesland loG | London | Central/Eastern Europe industrial | €160 |
NIAM Nordic Investment Fund IV | Newsec Incentive Asset Mgmt. | Stockholm | Nordic region diversified | N/A |
Europe funds subtotal | $19,959 | |||
Asia/RoW funds | ||||
AG Asia Realty Fund | Angelo Gordon | New York | Asia diversified | $300 |
Anand Rathi Realty Fund | Anand Rathi | Mumbai | India diversified | $115 |
Appian Indian Real Estate Portfolio | Appian | N/A | India diversified | $150 |
Horizon Realty Fund | Capitaland/Pantaloon Retail | Singapore/Mumbai | India retail | $350 |
N/A | The Carlyle Group | Washington DC | Latin America diversified | $400-$600 |
Carlyle Santa Fey Real Estate Fund | The Carlyle Group | Washington DC | India diversified | $300 |
Colony Asia Investors II | Colony Capital | Los Angeles | Asia diversified | $400 |
DHFL Venture Capital Fund II | Dewan Housing Finance | Mumbai | India residential | $200 |
N/A | EAV Realty | New York | China diversified | $100-$500 |
Fortune Capital Holdings | PFH Investment Advisory | Mumbai | India hospitality | $200 |
Forum Asian Realty Income Fund III | Forum Partners | Beijing | Asia diversified | N/A |
N/A | Greenwich Group International | New York | India development | $1,000 |
HDFC Real Estate Venture Fund II | HDFC | Mumbai | India hospitality | $750 |
India Real Estate Opportunities Fund II | IREO | New York | India development | $400 |
N/A | New City Capital | Tokyo | Asia diversified | $1,000 |
LaSalle Asia Opportunity Fund III | Lasalle Investment Managment | Chicago | Asia diversified | $1,000 |
LaSalle Japan Logistics Fund II | Lasalle Investment Managment | Chicago | Asia logistics | $400 |
Kotak Realty Fund II | Kotak Realty Fund | Mumbai | India diversified | $350 |
Kshitij Venture Capital Fund | Pantaloon Retail/Dalmia Group | Mumbai | India retail | $60 |
Prosperitas Real Estate Partners I | Prosperitas Capital | Sao Paolo | Brazil diversified | $330 |
Red Fort Real Estate India Fund I | Red Fort | New Delhi | India diversified | $300 |
Tano India Real Estate Fund | Tano Capital | San Mateo (CA) | India diversified | $100-$500 |
Tishman Speyer Brazil Fund | Tishman Speyer | New York | Brazil diversified | $500 |
Tishman Speyer India Fund | Tishman Speyer/ICICI | New York | India diversified | $600 |
Tishman Speyer GSC China Fund | Tishman Speyer/GSC | New York | China diversified | $500 |
N/A | Trikona Capital | Grand Cayman | India development | $300 |
Walton Street Mexico Fund I | Walton Street Capital | Chicago | Latin America diversified | N/A |
N/A | West University Capital | Houston | India diversified | $300 |
Asia/Row funds subtotal | $13,875 | |||
Fund of funds | ||||
4IP European Real Estate Fund of Funds | Sal. Oppenheim | Zurich | Europe fund of funds | €300 |
American Value Partners Fund I | American Value Partners | Los Angeles | US fund of funds | $400 |
Composition Capital Americas | Composition Capital Partners | Amsterdam | Americas diversified | $300 |
Composition Capital Asia II | Composition Capital Partners | Amsterdam | Asia diversified | $400 |
Composition Capital Europe II | Composition Capital Partners | Amsterdam | Europe diversified | €350 |
Continental European Fund II | Schroder Property Investment | London | Europe fund of funds | €250 |
Fiduciary International Real Estate Fund 2 | Franklin Templeton/Fiduciary | San Mateo (CA) | Global fund of funds | $300 |
Goldman Sachs Real Estate Partners | Goldman Sachs | New York | Global fund of funds | $1,000 |
Madison Harbor Private Real Estate Partners | Madison Harbor Capital | New York | Global fund of funds | $400 |
Metropolitan Real Estate Partners V | Metropolitan Real Estate | New York | US fund of funds | $250 |
Metropolitan Real Estate Partners Int'l II | Metropolitan Real Estate | New York | Europe fund of funds | $200 |
Newlin Realty Partners | Newlin Capital Partners | Princeton (NJ) | Global fund of funds | $130 |
Fund of funds subtotal | $4,251 | |||
TOTAL | $115,206 |
FUNDS CLOSED IN 2007
FUND | FIRM | HEADQUARTERS | STRATEGY | CLOSE | TARGET (m) | CLOSED (m) | DATE |
Global funds | |||||||
Baynorth Realty Fund VII | Baynorth Capital | Boston | US/ Europe diversifiied | Final | $400 | $473 | Mar-07 |
Beacon Capital Strategic Partners V | Beacon Capital Partners | Boston | US/Europe diversified | First | $3,000 | $1,200 | Feb-07 |
Macquarie Global Property Fund III | Macquarie Global Property Advisors | Hong Kong | Asia/Europe diversified | First | $3,500 | $800 | Jun-07 |
Morgan Stanley Real Estate Fund VI | Int'l Morgan Stanley | New York | Non-US diversified | Final | $8,000 | $8,000 | Jun-07 |
Redwood Grove International | Grove International Partners | London | Europe/Japan diversified | Final | $1,500 | $2,000 | Jun-07 |
Whitehall Street Global Real Estate 2007 | Goldman Sachs | New York | Global diversified | Final | N/A | $4,100 | Jun-07 |
Global funds subtotal | $16,573 | ||||||
North America funds | |||||||
Acadia Strategic Opportunity Fund III | Acadia Realty Trust | White Plains (NY) | US retail | First | $500 | $450 | May-07 |
Avanti Strategic Land Investors V | Avanti Investment Advisors | Winter Park (FL) | US land | Final | N/A | $200 | Feb-07 |
Birchmont Capital Partners I | Birchmont Capital Partners | Los Angeles | North America diversified | Final | N/A | $200 | Feb-07 |
Equastone Value Fund II | Equastone | San Diego | US office | FInal | N/A | $172 | May-07 |
Harrison Street Real Estate Partners I | Harrison Street | Chicago | North America diversified | Final | $150 | $210 | May-07 |
Hines US Office Fund | Hines | Houston | US office | Final | $650 | $828 | Aug-07 |
IMT Capital Fund | IMT Capital | Los Angeles | US residential | Final | N/A | $350 | Aug-07 |
Madison Marquette Retail Enht. Fund | Madison Marquette | Washington DC | North America retail | Final | $350 | $487 | May-07 |
Noble Hospitality Fund | Noble Investment Group | Atlanta | US hospitality | Final | N/A | $310 | Mar-07 |
Shamrock-Hostmark Hotel Fund | Shamrock Capital | Los Angeles | US hospitality | Final | N/A | $100 | May-07 |
Shorenstein Realty Investors IX | Shorenstein Properties | San Francisco | US diversified | Final | N/A | $1,300 | May-07 |
Rockwood Capital Real Estate Fund VII | Rockwood Capital | San Francisco | US diversified | Final | N/A | $1,100 | Jan-07 |
Sterling American Property V | Sterling Equities | New York | US diversified | Final | $400 | $610 | Jan-07 |
Place/Blue Vista Student Housing Fund | Place Properties/Blue Vista Capital | Atlanta/Chicago | US student housing | Second | $200 | $280 | Apr-07 |
North America funds subtotal | $7,447 | ||||||
Europe funds | |||||||
CapMan Real Estate Fund II | CapMan Stockholm | Finland | diversified | Final | $150 | $150 | Apr-07 |
Europa Emerging Europe Fund | Europa Capital | London | Eastern Europe diversified | First | $200 | $100 | Mar-07 |
Harbert Real Estate II | Harbert Managment | Birmingham (AL) | Europe diversified | Final | N/A | $305 | May-07 |
ING Real Estate Iberian Value Added Fund | ING Real Estate | Amsterdam | Spain/Portugal diversified | Final | $250 | $300 | Jun-07 |
JER Real Estate Partners Europe 3 | JER Partners | McLean (VA) | Europe diversified | Final | $300 | $809 | Jun-07 |
Marbleton Property Fund | JER Partners/Alfa Capital | McLean (VA)/Moscow | Russia/Ukraine diversified | Final | $200 | $321 | Jun-07 |
Patron Fund III | Patron Capital | London | Europe diversified | Final | $500 | $895 | Mar-07 |
Tishman Speyer European RE Venture VI | Tishman Speyer | New York | Europe office | Final | $500 | $1,350 | Jun-07 |
Europe funds subtotal | $4,895 | ||||||
Asia/RoW funds | |||||||
CPI Capital Partners Asia Pacific | Citigroup Property Investors | New York | Asia diversified | Final | N/A | $1,290 | Feb-07 |
Triseas Korea Property Fund | Doran Capital Partners | Seoul | Korea diversified | First | $250 | $135 | Mar-07 |
N/A | KK Davinci Advisors | Tokyo | Asia diversified | Final | N/A | $2,800 | Feb-07 |
SUN-Apollo India Real Estate | Fund SUN Group/Apollo Real Estate | Mumbai/New York | India diversified | Final | $500 | $630 | Jan-07 |
Asia/Row funds subtotal | $4,855 | ||||||
Fund of funds | |||||||
Aberdeen Indirect Property Partners Asia | Aberdeen Property Investors | Stockholm | Asia fund of funds | Second | $600 | $435 | Apr-07 |
Continental European Fund I | Schroder Property Investment | London | Europe fund of funds | Final | $250 | $253 | Jul-07 |
Franklin Temp. European Fund of Funds | Franklin Templeton/ Fiduciary | San Mateo (CA) | Europe fund of funds | Final | N/A | $273 | Feb-07 |
LaSalle Investment Company II | LaSalle Investment Managment | Chicago | Global fund of funds | Final | $1,000 | $1,000 | Mar-07 |
Fund of funds subtotal | $2,047 | ||||||
TOTAL | $36,022 |
The big boysFunds in market with targets of $2bn or more
FIRM | FUND STRATEGY | TARGET (m) |
Beacon Capital Partners | US/Europe diversified | $3,000 |
The Blackstone Group | Global diversified | $8,000 |
Colony Capital | Asia diversified | $2,000 |
Credit Suisse | Global diversified | $2,000 |
Lehman Brothers | Global diversified | $3,000 |
Lone Star Funds | Global diversified | $6,000 |
Macquarie Global Property Advisors | Asia/Europe diversified | $3,500 |
Rockpoint | Global diversified | $2,000 |
Walton Street Capital | US/Europe diversified | $2,500 |
Stockbridge Capital Partners | US diversified | $3,000 |
Tishman Speyer | US diversified | $2,000 |
Corestate Capital | German residential | €4,000 |
LaSalle Investment Management | UK diversified | $2,200 |