Equity capital invested into non-listed real estate reached
record levels in 2017 with €152.3bn (£132.8bn) raised globally, according to
research by the European Association for Investors in Non-Listed Real Estate
Vehicles (INREV).
The
figure is a 25% increase on the year before. For the third year running, Europe
topped the list as the investment destination of choice with 44.1% (€67.2bn) of
capital raised destined for the region. Funding into North America accounted
for 28.8% (€43.9bn) of total capital, followed by Asia Pacific with 16.4%
(€24.9bn).
But the report also
revealed that the level of investment into North American and global strategies
has been rising year-on-year while the reverse is true of European strategies.
Pension funds and insurance companies were the leading sources
of capital last year with the former making up 35.8%, of new capital raised
while the latter accounted for 13.2%.
Non-listed funds were the vehicle of choice for fundraising with
55.1% of all capital raised invested into funds. Separate accounts investing
directly received 20.7% of the capital.
Looking forward, 69.1% of managers said they expect capital
raising into non-listed real estate to increase in the next two years.