Around £36bn of capital will be available to invest in real estate in the
According to DTZ Research’s The Great Wall of Money, the figure mirrors the situation globally where capital available for real estate investment will more than double to $315bn worldwide in 2010
The ratio of capital targeting real estate in the
Regional investment patterns are expected to continue in line with 2009 trends, with 50% of the capital targeting investment in Europe, 27% in Asia-Pacific and 23% in the
The report highlights two main categories of investor – third party managed funds and institutions. Third party managed funds account for 60% of the capital, while 28% is available from institutions. The remaining 12% has been raised by sovereign wealth funds, German open ended funds, publicly listed companies and high net worth individuals.
DTZ Research estimates that of the £36bn of capital targeting the
Nigel Almond, associate director of real estate strategy at DTZ Research, said: “Most investors are adopting multi-sector and/or multi country strategies as part of sector and geographic diversification strategies, and reflecting the opportunistic nature of most fund mandates. 81% of capital is being directed towards multi, rather than single sector investments, and 70% of total capital is targeting two or more countries.”
Just 19% of the total capital has been raised to target specific, single real estate sector, of which industrial accounts for 5%, office 4% and retail 3%. Those investing in a single country are predominantly focused on the major liquid markets of the
annabel.dixon@estatesgazette.com
