Non-listed Aussie RE funds raise $3.86b in 2020
Despite the outbreak of COVID-19, the Australian real estate market remained attractive for investors and has managed to raise $3.86 billion in 2020 for its non-listed funds investing into its core real estate.
The ‘Annual Capital Raising Survey 2021’, conducted by the Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) and its sister organisations, found that globally non-listed real estate funds represented in 2020 60% by value of all the capital raised with $111.7 billion, which proved non-listed funds as the most popular route to invest into real estate.
What is more, 71% of the capital raised for non-listed Australian core real estate funds in 2020 originated from investors based in the Asia Pacific region, with a further 26% having been raised from European investors and 3% from North American investors.
As far the Asia Pacific investors were concerned, 49% of the funds were raised from investors domiciled in Australia, while 19% came from those in Singapore, 11% from Japan and 22% from other markets in the region.
According to fund managers, Singapore-based investors were also particularly active in the Australian office market during the pandemic.
The Australian industrial/logistics sector attracted 65% of funds raised while office single sector funds raised 27% of the total capital raised for Australia core real estate funds in 2020, with the remaining 7% destined for multi sector strategies.
“This year’s survey shows encouraging data on investor appetite for non-listed real estate in Asia Pacific and globally. The amount raised in 2020 was lower than 2019 but should be seen as a normalisation of capital raising activity rather than a sharp dip in appetite,” Amélie Delaunay, director of research and professional standards at ANREV, said.
“To raise similar levels of capital as in previous years during one of the most tumultuous years in living memory speaks volumes about the level of interest and healthy appetite for non-listed real estate as a component of an investment portfolio.”
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