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02 November 2012

IPE: Study shows property debt funds facing double hurdle

Between €8 billion and €10 billion has been raised for European real estate debt investments, but a changeable lending market has prevented more debt funds from being launched, according to INREV.

The association's 'European Real Estate Debt Study' estimates that €4-5 billion has been raised for debt funds over the past three years, with a similar amount secured for separate account mandates. Following the release of its first major piece of research on the emerging investment sector, INREV said investors had expressed "increased interest" in European real estate debt funds, based on interviews with institutions. But the report also referred to challenges facing fund managers seeking to launch debt funds – principally a difficult capital-raising market and a need to adjust to changes in the European lending market.

The INREV report highlighted manager track record as one of the most important factors for investors when considering whether to commit capital.

Full article (IPE subscription required)

© IPE International Publishers Ltd.

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