Chart of the Week: Portfolio allocations to real estate

 What region invests the most in real estate?  

 COW219-411 

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At the end of 2013, PERE Research & Analytics had profiled over 2,300 LPs investing in private equity real estate funds. Using this comprehensive data, we were able to take a snapshot of the overall LP community in each region of the globe. 
 

The LPs profiled in the Middle East and Africa had the largest average allocation to real estate, followed by LPs based in the Asia-Pacific region. There are quite a few large players in the regions including the Abu Dhabi Investment Authority, the Qatar Investment Authority, and the Government of Singapore Investment Corporation, which placed first, second, and fourth, respectively, in our PERE 2013 Global Investor 30 ranking.

Latin American based LPs had the lowest average allocation to the sector. One reason for this is due to the relative newness of the private real estate sector in the region. For example, it was just in 2009 when Mexico introduced listed private equity funds known as Certificados de Capital de Desarollo that allowed the local pension funds to invest in real estate assets.