Welcome to the H1 2013 edition of Preqin Investor Outlook: Real Estate, a unique look at institutional investors in real estate, their views on the market and the outlook for the coming year. The report draws on the results of a series of extensive interviews carried out with more than 100 institutional investors in real estate funds in November and December 2012, as well as the year-round research carried out for Real Estate Online, the private real estate fund industry’s leading source of data and intelligence.
There are strong signs that investor confidence in private real estate funds is returning, with 49% of investors having made new commitments in 2012, and 53% planning to make new commitments to the asset class in 2013. The improvement in the performance of private real estate has encouraged some institutions to return to the asset class, while an increase in the rate of distributions from their existing commitments means that many investors also have more capital available to invest. We look at investor activity in the past year on page 4 and appetite for new investments in 2013 on page 5. The majority (54%) of investors also expect to commit more capital to the asset class in 2013 than they did in 2012 and we look at expected capital outlay and number of commitments planned on page 6.
While a large proportion of investors focused primarily on core investments following the downturn, many are now increasingly looking at opportunities higher up the risk/return spectrum. Investor interest in core remained strong during 2012, but there was also increased appetite for core-plus, value added and opportunistic strategies. Page 7 examines the strategies and geographies targeted by investors in 2013.
Source : Preqin