Chart of the Week: Western European Fundraising Q1 2013 – Q1 2014

Core/Core Plus Funds Dip Significantly From a Year Prior

 COW 6-11 411x 

 

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Data from PERE Research & Analytics has revealed that, between Q1 2013 through Q1 2014, a total of $24.2 billion had been raised for Western European-focused private real estate funds. Total capital raised between these funds in Q1 2014 was $5.13 billion, a dip from the $6.64 billion raised in the prior quarter. Q4 2013 also represents the largest capital raised in the time period, representing slightly above a quarter of total capital raised for Q1 2013-Q1 2014.

In terms of strategy, debt funds have shown a particularly steady growth during the time period, with a 48% growth in Q1 2014 when compared to its lowest point in Q3 2014. Debt funds also represent the most capital raised out of all other strategies in Q1 2014, raising a total of $2.25 billion. Conversely, in Q1 2014, most other strategies faced a decrease in total capital raised from the prior quarter. Value-add and opportunistic funds both dipped in total capital raised in Q1 2014 from Q4 2013, where total capital raised for both strategies were at their highest point for the time period. Core/Core Plus funds had faced significant volatility for the Q1 2013-Q1 2014 period. These funds had peaked in Q1 2013, where they raised $3.82 billion. But then, they dropped significantly to $233 million in Q4 2013. However, Core/Core Plus funds had faced, once again, an upward trend in Q1 2014 where $691 million was raised.

Notable Western European-focused funds in market include the core-focused UBS European Mega Core Property Fund, a fund managed by UBS Global Asset Management that is targeting €1 billion, and the Value Add Fund RREEF Real Estate Partners III, launched by Deutsche Asset & Wealth Management, and is seeking to collect €1 billion as well.