A study conducted by INREV, the European association for investors in non-listed real estate vehicles, reveals that the capital generated for European non-listed property funds plummeted by 60% in 2009.
As compared to 2008, when fund managers collected €14.8 bn, only €5.9 bn was raised last year. This figure is expected to reach €10.9 bn in 2010. Core funds that offer lower risk/return benefits contributed to 87% of the capital raised in 2009, while opportunity funds constituted 4%. Sixty four per cent of the capital inflows came from repeat investors.
Lonneke Löwik, Director of Research and Market Information believes that the subdued numbers tend to make people overlook the efforts put in by fund managers to align their fund offerings with the needs of the investors post recession.
Pension funds, life insurance and sovereign funds were the most dominant investor groups with stakes of 54%, 15% and 11% respectively, in the total capital raised. German, UK, Switzerland and Netherlands were the most generous contributors to the capital raised.
Find a range of bridging loans on our website for your property needs.
Related posts: