PERE: Q1 APAC fundraising leapfrogs Europe

North America-focused property strategies again proved most popular with investors in Q1 but capital raised by APAC closed-ended private real estate funds took second spot, according to PERE fundraising data. 

Asia Pacific-focused closed-ended private real estate funds took a greater proportion of the capital raised in Q1 than global and European strategies, according to new statistics from PERE Research & Analytics.

Funds targeting investments in Asia Pacific accounted for 14 percent of the total $19.57 billion raised during the first quarter. Global and Western European strategies accounted for 11 percent and 9 percent respectively.

The nearly $2.8 billion collected for Asia Pacific investing was raised through six funds, the largest being Gaw Capital Partners latest opportunistic vehicle – Gateway Real Estate Fund V – which raised nearly half the total amount after hitting a final close on $1.3 billion last month.

North America-focused funds dominated capital raising and took a 64 percent share of all the capital raised in Q1. The largest fund to close in the quarter was Cerberus Capital Management’s latest vehicle – Cerberus Institutional Real Estate Partners IV – which has so far garnered support of $1.8 billion towards a $2 billion target.

Last year’s first quarter fundraising results saw a more even split between the strategies with global-focused and North America-focused vehicles both attracting 30 percent of the $29.96 billion capital raised. Funds targeting Western Europe attracted 22 percent.

A total of 41 funds closed in Q1 2017, which is down against the 74 funds closed during the same period last year.

The results show a continuation of the trend which has seen global real estate fundraising dive last year. In 2016, a total of $120.97 billion was raised from 214 funds, down considerably from the 2015 tally of $143.85 billion from 253 funds. The total number of funds closed in 2016 was the lowest in eight years, while the total capital raised was the lowest in five years.