News

Capital raised for real estate globally reaches new high

Commercial_real_estate_riseThe amount of money raised globally for investment in real estate last year was closing on US$200 billion and described as a “new high”. In total, fund managers raised $193.7 billion of real estate investment capital – which includes $185.4 billion for non-listed real estate, a 15.7% rise. Of the total raised, around $91.8 billion was yet to be invested. The organisation behind the ‘Capital raising survey 2019’ – the trade bodies Anrev, Inrev and NCREIF – said the “surge in capital flow” reinforced an ongoing trend in capital raising for real estate and that just over 70% of the 203 fund managers surveyed expected capital raising activity to increase. The research found:
  • Europe strategies attracted $83.2 billion (44.8%)
  • North America strategies attracted $61.4 billion.
  • Asia Pacific strategies attracted $26.9 billion (14.5%)
  • Global strategies and South American strategies at raised $12.7 billion and $1.3 billion, respectively
More investors from North America were seen to be participating in the market:  37.3% of all equity raised was from North America compared with 27.9% in 2017. They were also seen to be investing comparatively more overseas. Asia Pacific fund managers earmarked 74.9% of new equity for vehicles with an Asia Pacific strategy and 22.4% to be split between mainly European and then North American and global vehicles. Fund managers in Europe planned to deploy 81.4% of the capital they raised in their home region. North American fund managers will invest comparatively the least in their domestic market at 66.2% of new capital. ©2019 funds global asia

Sponsored Profiles

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Sponsored profile: Bridging the gap

Mar 11, 2019

Private equity is a core part of the business for Caceis’ Hong Kong office, which looks after clients in China and Europe. David Li, chief executive officer, explains why private equity enjoys strong client demand and how it is being used to fund China’s international infrastructure ambitions.

Executive Interviews

Executive interview: Understanding geographies

Apr 06, 2020

Margaret Harwood-Jones, co-head financing and securities services at Standard Chartered, shares her insights on platform standardisation, opportunities in Asia and regulatory change to encourage...

Executive interview: ‘Bull markets don’t die of old age’

Dec 12, 2019

Having a balanced portfolio in the midst of the longest expansion in history is an investment imperative, Chris Alderson, co-head of global equity and head of international equity at T Rowe Price...

Roundtables

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.

Singapore roundtable: A horizon to hold long-term assets

Dec 12, 2019

Panellists discuss the geopolitical fractures concerning asset owners, Singapore as a hub for fintech start-ups and why it makes sense to raise capital from a Variable Capital Company (VCC). Chaired by Romil Patel in Singapore.