Four in five Asian investors plan real estate fund commitments - survey

A survey of more than 100 investors in private real estate funds, conducted by Preqin, shows an overall increase in appetite for the asset class with 53% of global respondents expecting to make commitments to private real estate funds this year. In a similar study a year ago, just 36% of respondents expected to make investments in the following 12 months.

More than half of respondents are targeting value-added funds, up from 45% last year. There has also been a notable increase in demand for real estate debt funds, with 34% of respondents expressing an interest in the strategy.

"There are strong signs that investor confidence in private real estate funds is returning. Not only has the proportion of investors planning new commitments increased, but the majority of investors are expecting to commit more capital to private real estate in 2013 than they did in 2012," said Andrew Moylan, Preqin's real estate data manager. "Very few institutions are reducing their real estate allocations, and 43% of investors expect to increase their exposure to real estate in 2013."

Moylan added that while the data are encouraging for real estate managers, fundraising will remain challenging in the coming months due the large number of funds in market and the fact that many investors are still not expected to be active.

AVCJ Research shows that Asia-focused real estate funds raised around $6.6 billion from investors last year, a 30% increase on the $4.6 billion raised in 2011.

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• Topics
• Real estate
• Fundraising
• Real estate
• Fundraising