the q2 2016 preqin quarterly update real estate · for any decisions of whatever nature the reader...

alternative assets. intelligent data.

Content includes...

Fundraising Lowest number of funds

closed in a single quarter in

over 12 years.

Funds in Market More than 500 funds are

currently in market seeking

capital.

Deals Office assets represented

the largest proportion of

both number of deals and

aggregate value in Q2.

Investors in Private Real Estate Appetite for Europe

increases during Q2.

Dry PowderPrivate real estate dry

powder now stands at a

record $238bn.

The Q2 2016

Preqin Quarterly Update

Real Estate Insight on the quarter from the leading provider of alternative assets data

The Preqin Quarterly Update: Real Estate, Q2 2016

Download the data pack at:www.preqin.com/quarterlyupdate

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Foreword - Andy Moylan, Preqin

The trend of capital concentration in the private real estate asset class has continued, with Q2 2016 seeing fewer funds close than the fi rst quarter of the year, which in turn represented a fall from Q4 2015. Despite the decreasing number of vehicles reaching a fi nal close, the level of capital secured by private real estate funds has increased for two consecutive quarters. This was driven by two large fund closures from Brookfi eld Asset Management and Lone Star Funds, which secured $9bn and $5.9bn respectively. Furthermore, there remains fi erce competition for investor capital, with more funds currently in market (505) targeting more capital ($175bn) than seen in recent years.

Performance has remained strong amid increasing asset valuations; private real estate funds have experienced positive average changes in NAV for 22 consecutive quarters, with the PrEQIn Real Estate Index increasing 2.3% in Q3 2015, compared to the 6% loss of the S&P 500 Total Return Index in the same period.

Q2 2016 has seen an increase in the proportion of investors seeking opportunities beyond North America in the next 12 months. Forty-nine percent of investors plan to target Europe in the year ahead compared to 47% targeting North America, a signifi cant reversal from 12 months ago. However, in a recent Preqin survey analyzing the impact of the Brexit vote, over half the institutional investors that responded to the survey plan to invest less in the UK market over the next 12 months.

Preqin’s Real Estate Online has been expanded to include transaction data, and is now the only service to be able to track the private real estate fund market from institutional sources of capital, through funds and fund managers to individual asset- and deal-level data. The second quarter of 2016 saw mixed-use assets account for 27% of private real estate aggregate deal value, up from 17% in Q1. While North American assets continue to dominate the private real estate deal market, accounting for 69% of all deals, the largest deal in Q2 2016 was BlackRock’s sale of the Asia Square Tower 1 in Singapore to Qatar Investment Authority for $2.45bn.

We hope you fi nd this report useful and welcome any feedback you may have. For more information, please visit www.preqin.com or contact [email protected].

Fundraising in Q2 2016 3

Funds in Market 5

Deals 6

Institutional Investors in Real Estate 9

Dry Powder 10

Fund Performance 12

Conferences 13

Contents

Data Source:

Preqin’s Real Estate Online is the leading source of intelligence on the private real estate fund industry. Real Estate Online

is the only service that can provide information on all areas of the private real estate asset class, including institutional investor, fund, performance, deal and asset data.

For more information, or to arrange a demo, please visit: www.preqin.com/reo



3© 2016 Preqin Ltd. / www.preqin.com

Fundraising in Q2 2016

Q2 2016 saw the lowest number (32) of funds close in a single quarter in over 12 years. However, despite nearly half the number of funds closing compared to Q1, the aggregate capital raised was $2.8bn higher at $26.7bn (Fig. 1). This high concentration of capital was the result of two large fund closures by Brookfi eld Asset Management and Lone Star Funds, which secured $9bn and $5.9bn respectively, accounting for 56% of all capital secured during Q2 2016.

With both of these mega funds utilizing a primarily opportunistic strategy, it is unsurprising that this strategy dominated fundraising in the quarter, securing $16.8bn from just nine funds reaching a fi nal close (Fig. 2). There continues to be demand for higher risk investment strategies, with only four lower risk core and core-plus funds closed in Q2 2016 securing an aggregate $2.2bn.

Despite half the number of North America- and Europe-focused funds reaching a fi nal close in Q2 2016 compared to Q1, the aggregate amount of capital raised by these funds increased over the same period, with North America remaining the dominant region (Fig. 3). The second quarter of 2016 saw funds focused outside North America, Europe and Asia record an increase of $1bn in aggregate capital raised from Q1 2016, buoyed by the $500mn closure of Actis Africa Real Estate Fund 3.

The average time taken for funds to reach a fi nal close has dropped slightly from 19 months for funds closed in 2015 to 18 months for funds closed in H1 2016, but remains relatively similar to the average fundraising periods seen in recent years (Fig. 4). The majority (52%) of funds reaching a fi nal close in the fi rst half of 2016 exceeded their fundraising target, a signifi cantly larger proportion than for those funds closed in 2015 (Fig. 5).

Key Fundraising Facts: Q2 2016

$27bnAmount of capital raised by closed-end private real estate funds closed during the quarter.

63%Opportunistic funds accounted for nearly two-thirds of all capital raised in Q2 2016.

65%Proportion of funds closed in H1 2016 that reached or exceeded their initial target size.

$9bnAmount of capital raised by Brookfield Strategic Real Estate Partners II, the largest fund to close in the quarter.

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2010 2011 2012 2013 2014 2015 2016

No. of Funds Closed Aggregate Capital Raised ($bn)

Fig. 1: Global Quarterly Closed-End Private Real Estate Fundraising, Q1 2010 - Q2 2016

Source: Preqin Real Estate Online

Date of Final Close

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Fig. 2: Closed-End Private Real Estate Fundraising in Q2 2016 by Primary Strategy


Primary Strategy




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No. of FundsClosed

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Fig. 3: Closed-End Private Real Estate Fundraising in Q2 2016 by Primary Geographic Focus


Primary Geographic Focus

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Fig. 4: Average Time Spent in Market by Closed-End Private Real Estate Funds, 2010 - H1 2016


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(Mo

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Date of Final Close

Fig. 6: 10 Largest Private Real Estate Funds Closed in Q2 2016

Fund FirmFund Size

(mn)Primary Strategy

Primary

Geographic Focus

Brookfi eld Strategic Real Estate Partners II

Brookfi eld Asset Management 9,000 USD Opportunistic Global

Lone Star Real Estate Fund V Lone Star Funds 5,900 USDDebt, Distressed,

OpportunisticGlobal

AllianceBernstein Commercial Real Estate Debt Fund II

AB Global 1,550 USD Debt US

PAG Real Estate Partners PAG Real Estate 1,350 USD Core, Core-Plus Asia, Australia

KKR Real Estate Partners Europe KKR 739 EUR Opportunistic Europe

Paramount Group Real Estate Fund VIII

Paramount Group 775 USD Debt US

Madison Realty Capital Debt Fund III Madison Realty Capital 695 USD Debt US

Benson Elliot Real Estate Partners IV Benson Elliot Capital Management 625 EUR Value Added Europe

Walton Street Real Estate Debt Fund Walton Street Capital 654 USD Debt US

Next Estate Income Fund IIBNP Paribas Real Estate Investment

Management Luxembourg527 EUR Core Europe


14% 11% 8% 7%1%

36%34%

35% 39%

34%

14%13% 16%

21%

14%

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10%19% 16%

9%

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2012 2013 2014 2015 H1 2016

125% or More

101-124%

100%

50-99%

Less Than 50%

Fig. 5: Closed-End Private Real Estate Funds by Proportion of Target Size Achieved, 2012 - H1 2016


Pro

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lose

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Date of Final Close

Data Source:

Analyze fundraising over time by fund strategy, property type and location with Preqin’s Real Estate Online, which contains detailed profi les for over 5,100 private real estate funds.

Plus, see who is currently on the road raising a private equity real estate fund and who will be coming to market soon.

For more information, or to arrange a demo, please visit:

www.preqin.com/reo




Funds in Market

The number of closed-end private real estate funds in market now stands at a record 505 vehicles, which are looking to raise an aggregate $175bn as at the start of Q3 2016 (Fig. 1). North America remains the most targeted region for private real estate funds, with 61% of funds in market primarily focused on opportunities within the region, with the majority (57%) of targeted capital also focused on the region (Fig. 2). Europe-focused vehicles account for a fi fth of funds in market, followed by those targeting Asia (11%).

As seen in Fig. 3, fundraising is still a long process for many fi rms: 53% of funds currently in market have been seeking institutional capital for over a year, including nearly a quarter of funds that have been on the road for over two years. In addition, 40% of funds that have yet to hold an interim close have been on the road for over 12 months.

The fi ve largest private real estate funds in market are currently targeting a combined $22bn. Four of the top fi ve largest funds in market utilize debt strategies, including Lone Star Fund X, the only fund in the top fi ve that is new to market in Q2 2016.

Fig. 4: Five Largest Closed-End Private Real Estate Funds Currently in Market

Fund FirmTarget Size

(mn)Strategy

Primary

Geographic Focus

Blackstone Real Estate Partners Europe V Blackstone Group 7,000 EUR Distressed, Opportunistic Western Europe

Lone Star Fund X Lone Star Funds 5,000 USD Debt, Distressed, Opportunistic US

Blackstone Real Estate Debt Strategies III Blackstone Group 4,000 USD DebtEurope, North

America

Oaktree Real Estate Opportunities Fund VIIOaktree Capital Management

3,000 USD Debt, Distressed, Opportunistic Global

Colony Distressed Credit & Special Situations Fund IV

Colony Capital 2,500 USD Debt, DistressedUS, Western

Europe


448 438 453 466 467 468 466 478 470

423 429451

489 492 505

149 150 160 163 163 164 165 165 163 164 153 155174 175 175

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2013 2014 2015 2016

No. of Funds Raising Aggregate Target Capital ($bn)

Fig. 1: Closed-End Private Real Estate Funds in Market over Time, Q1 2013 - Q3 2016


308

102

5540

100

47

18 100

50

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NorthAmerica

Europe Asia Rest of World

No. of FundsRaising

AggregateTarget Capital($bn)

Fig. 2: Closed-End Private Real Estate Funds in Market by Primary Geographic Focus


Primary Geographic Focus

27%40%

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19%

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22%

20%

25%

8%

4%

12%

22%17%

27%

0%

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100%

All Funds Funds Yet toHold an Interim

Close

Funds that HaveHeld at LeastOne Interim

Close

More than24 Months

19-24 Months

13-18 Months

7-12 Months

6 Months orless

Fig. 3: Time Spent on the Road by Closed-End Private Real Estate Funds Currently in Market


Pro

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Deals

As a result of two large transactions, the second quarter of 2016 saw a signifi cant increase in the proportion of aggregate private equity real estate (PERE) deal value accounted for by mixed-use assets, despite the number of deals for this property type remaining level with Q1 (Fig. 1). Offi ce assets represented the largest proportion of both the number of deals (27%) and aggregate value (29%) in Q2.

Assets of over 500,000ft2 purchased in Q2 2016 account for the majority (54%) of aggregate deal value, despite representing just a fi fth of the number of deals. Correspondingly, the proportion of aggregate deal value represented by smaller properties (under 200,000ft2) fell in Q2 2016, despite the proportion of deals increasing slightly from Q1 2016 (Fig. 2).

North American assets were the most targeted region for PERE deals in Q2 2016, accounting for over two-thirds (69%) of all deals (Fig. 3). Just over a quarter (26%) of all deals in Q2 were

completed for European assets, while transactions involving PERE fi rms in all other regions were much less prevalent: one in 20 deals in Q2 were for assets outside North America and Europe.

While the proportion of completed portfolio deals increased from Q1 to Q2, the proportion of aggregate value declined for multi-asset transactions (Fig. 4). This can be attributed to some large single-asset transactions in the quarter (Fig. 5): all of the top fi ve single-asset deals were completed for higher values than the largest portfolio transaction, the $700mn acquisition of Jehovah’s Witnesses’ diversifi ed portfolio of New York-based assets by Kushner Companies, RFR Realty and LIVWRK (Fig. 6). While the US typically dominates deal fl ow, the largest deal completed in the quarter was BlackRock’s sale of a Singaporean mixed-use asset, Asia Square Tower 1, to Qatar Investment Authority for $2.45bn.

28% 27%33% 29%

22% 23%23%

19%

19% 15%12%

12%

13%14%

17%27%

10% 13% 6% 6%5% 4% 5% 5%

2% 2% 4% 2%1% 1% 1%

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Q1 2016 Q2 2016 Q1 2016 Q2 2016

No. of Deals Aggregate Deal Value

Land

Niche

Hotel

Industrial

Mixed Use

Retail

Residential

Office

Fig. 1: Private Equity Real Estate Deals by Primary Asset Type, Q1 2016 vs. Q2 2016


Pro

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28% 28%

12% 10%

22% 23%

11%8%

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28%28%

20% 19%

49% 54%

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Q1 2016 Q2 2016 Q1 2016 Q2 2016


500,000ft² orMore

200,000-499,999ft²

100,000-199,999ft²

Less than100,000ft²

Fig. 2: Private Equity Real Estate Deals by Asset Size,Q1 2016 vs. Q2 2016


Pro

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Key Deals Facts: Q2 2016

82%Proportion of completed PERE deals that were for single assets.

67%The US accounted for two-thirds of PERE aggregate deal value.

27%Proportion of completed PERE deals that were for office assets.

27%Mixed use assets accounted for 27% of PERE aggregate deal value, up from 17% in Q1 2016.




Fig. 5: Five Largest Single-Asset Private Equity Real Estate Deals Completed in Q2 2016

AssetAsset

TypeBuyer(s) Seller(s)

Deal Size

(mn)Location

Deal

Date

Asia Square Tower 1 Mixed Use Qatar Investment Authority BlackRock 2,450 USD Singapore Jun-16

1285 Avenue of the Americas

Offi ceChina Life Insurance, RXR Realty, David Werner Real

Estate

AXA Investment Managers - Real Assets, JP Morgan

Asset Management1,650 USD New York, NY May-16

The Shops At Crystals RetailInvesco Real Estate, Simon

Property GroupUnidentifi ed Seller(s) 1,100 USD Las Vegas, NV Apr-16

Blanchardstown Centre

Mixed Use Blackstone Group Unidentifi ed Seller(s) 950 EUR Dublin, Ireland Apr-16

Merry Hill Shopping Centre

Retail Intu Properties QIC Real Estate 601 GBPWest

Midlands, UKJun-16


69%

26%

2%3%

North America

Europe

Asia

Rest of World

Fig. 3: Private Equity Real Estate Deals Completed in Q2 2016 by Primary Asset Location


84% 82%70% 75%

16% 18%30% 25%

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Q1 2016 Q2 2016 Q1 2016 Q2 2016


Single Asset Portfolio

Fig. 4: Private Equity Real Estate Deals by Transaction Type, Q1 2016 vs. Q2 2016


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Fig. 6: Five Largest Portfolio Private Equity Real Estate Deals Completed in Q2 2016

AssetAsset

TypeBuyer(s) Seller(s)

Deal Size

(mn)Location

Deal

Date

New York, NY Diversifi ed Portfolio

Offi ceKushner Companies, LIVWRK, RFR Realty

Unidentifi ed Seller/s 700 USD New York, NY Apr-16

Las Vegas, Nevada, Apartment Portfolio

ResidentialBascom Group, Oaktree

Capital ManagementCamden Property Trust 630 USD Las Vegas, NV Apr-16

Las Vegas, NV, Diversifi ed Portfolio

Residential Unidentifi ed Buyer/s Camden Property Trust 630 USD Las Vegas, NV Apr-16

Borås, Sweden, Multi-Family Portfolio

Residential AP-Fonden 1 Unidentifi ed Seller(s) 540 EURBorås,

SwedenApr-16

New York, NY, Hotel Portfolio

Hotel Cindat Capital Management Hersha 571 USD New York, NY May-16


Data Source:

NEW! View detailed information on deal and exit size, type and location of assets purchased or sold, deal participants, service providers involved in the deal and much more.

For more information, or to arrange a demo, please visit: www.preqin.com/reo

+44 20 7121 5093 | [email protected] | www.europegri.com

DAVID BRUSHCIOMERLIN PROPERTIES SOCIMI, Spain

RICHARD CROFT CEOM7 REAL ESTATE, UK

GORDON BLACK Senior MD & Co-head of EuropeHEITMAN, UK

AREF LAHHAM Managing Director ORION CAPITAL MANAGERS, UK

FRÉDÉRIC BÔLHead of Real Estate FranceSWISS LIFE REIM, France

PARTICIPANTS INCLUDE:

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The 19th Annual

EUROPEEUROPEEUROPE GRI2016

HENRIE KÖTTER CIO & MD DevelopmentECE PROJEKTMANAGEMENT, Germany


Funds | Fund Managers | Investors | Deals | Performance | Service Providers

For more on Preqin’s industry-leading online service, please visit:

www.preqin.com/REO

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NEW




Institutional Investors in Private Real Estate

The majority (51%) of private real estate investors seeking new commitments will target core funds over the next 12 months, while the proportion targeting value added vehicles has declined by twelve percentage points since Q2 2015 (Fig. 1). This perhaps suggests that investors, concerned about the medium-term prospects for real estate, are being more conservative in their approaches. Despite this, higher risk strategies are still sought after, with investors displaying a relatively similar preference for investing in core, value added and opportunistic vehicles in the next 12 months.

Geographically, more active private real estate investors will be targeting Europe in the next year than North America, a reversal from Q2 2015 when the proportion of investors seeking opportunities in North America greatly eclipsed those seeking

Europe (Fig. 2). Interest in the Asia-Pacifi c region has grown since Q2 2015, while investors are seeking less opportunities in emerging markets and other geographies outside the more traditional regions.

A greater proportion of real estate investors are targeting a lower number of fund commitments in the next year compared to results seen in Q1 2016; 54% of active investors plan to commit to three funds or fewer (Fig. 3), while 41% planned the same in Q1 2016. However, the proportion of investors that are looking to commit over $300mn to the asset class over the next 12 months has increased from 13% in Q1 2016 to 19% in the second quarter of 2016 (Fig. 4). This is consistent with the trend seen in fundraising, with capital increasingly concentrated among a small number of the biggest fi rms.

47%

28%

10% 9%

49%

62%

51%

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47%50%

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Q2 2015 Q2 2016

Fig. 1: Strategies Targeted by Private Real Estate Investors in the Next 12 Months, Q2 2015 vs. Q2 2016


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55%

43%

18%

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47%49%

26%

5%8%

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NorthAmerica

Europe Asia-Pacific

Rest ofWorld

EmergingMarkets

Global

Q2 2015 Q2 2016

Fig. 2: Regions Targeted by Private Real Estate Investors in the Next 12 Months, Q2 2015 vs. Q2 2016


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19%

35%

42%

4%

1 Fund

2-3 Funds

4-9 Funds

10 Funds or More

Fig. 3: Number of Private Real Estate Funds Investors Plan to Commit to in the Next 12 Months


34%

17%

30%

15%

4%

Less than $50mn

$50-99mn

$100-299mn

$300-599mn

$600mn or More

Fig. 4: Amount of Capital Investors Plan to Commit to Private Real Estate Funds in the Next 12 Months





Dry Powder

Private real estate dry powder has continued to rise during the second quarter of this year and now stands at a record $238bn (Fig. 1). However, the rate of growth has slowed when compared to the previous quarter, having increased by approximately $20bn in the fi rst three months of the year but only $8bn in the second.

As expected, the majority (55%) of global dry powder is focused on North American opportunities (Fig. 2). However, since the end of 2015, the proportion of estimated industry dry powder accounted for by Europe-focused funds has increased, while North America-focused funds have seen their share of uncalled capital decrease. With a growing amount of capital targeting European property, Europe-focused dry powder has increased by 21% since December 2015, a much higher growth rate than that of Asia- (12%) and North America-focused funds (10%).

Higher risk strategies continue to hold the largest proportions of available capital: opportunistic funds hold 45% of dry powder, while value added funds account for a quarter of the total (Fig. 3). Additionally, the levels of uncalled capital available to opportunistic and value added strategies have increased by 20% and 21% since the end of 2015, a signifi cantly faster rate than any other strategy. Core strategies have experienced a 10% decline in available dry powder over the past six months.

132

167 171180

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167156

186196

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Fig. 1: Closed-End Private Real Estate Dry Powder, December 2006 - June 2016


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Fig. 2: Closed-End Private Real Estate Dry Powder by Fund Primary Geographic Focus, December 2006 - June 2016


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Core Core-Plus Debt Distressed Opportunistic Value Added

Fig. 3: Closed-End Private Real Estate Dry Powder by Strategy, December 2006 - June 2016


Dry

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SEPTEMBER 14 & 15 , 2016 | LOS ANGELES

P R I V A T E E Q U I T Y S U M M I T :

REGISTER TODAY AT www.iglobalforum.com/repe15

KEY TOPICS TO BE COVERED INCLUDE: • A renewed look at the capital markets and global market volatility impacting high pricing

• New niche opportunities and sectors investors are looking to in diversifi cation efforts

• Understanding the LP and operator perspective, and the evolution of partnerships in 2017

• Strategies for conquering fundraising challenges and the contrary issue of dry powder

• The recent infl ux of foreign capital into US real estate, and what to expect next year

• Demand and demographic shifts in real estate caused by technology innovations

• Strategies in alternative debt providers and investors acting as lenders to complement equity portfolios in the wake of new banking regulations

• The increasing importance of GP and OP partnerships in JV equity deals

KEYNOTE INTERVIEW WITH:

Use

discount code

PREQIN for 10% off

Bert J. Crouch

Managing Director,

Portfolio Manager –

Structured Investments

INVESCO REAL

ESTATE

Call: 1-212-901-0542 | http://www.imn.org/cfoeast16 | Email: [email protected]

Reference Discount Code “PQ10” for 10% Discount

REAL ESTATE CFO FORUM

The 5th Annual

Advisory Board Members:

September 19-20, 2016 | New York, NY

Eric Graham, CFO, BLUEPRINT CAPITAL REIT

Alex Topchy, CFO, BROAD STREET REALTY

Joel Hammer, CFO, CASTELLAN REAL ESTATE PARTNERS

John Warch, CFO, FOUR SPRINGS CAPITAL TRUST

Michael Giglio, CFO, KAUFMAN MANAGEMENT COMPANY, LLC

Marc Ehrlich, CFO, ROSE ASSOCIATES

James Allen, SVP & CFO, STARWOOD CAPITAL GROUP

Jerry Fink, Managing Partner, THE BASCOM GROUP, LLC

Michael Schurer, CFO, THOR EQUITIES, LLC




Fund Performance

Closed-end private real estate funds have experienced positive average changes in NAV for 22 consecutive quarters (Fig. 1). Furthermore, the PrEQIn Real Estate Index, which currently stands at 97.9 (rebased to 100 as of 31 December 2007), is at its highest point since Q1 2008, as the growth seen in the fi rst three quarters of 2015 drove the index up 13% (Fig. 2).

The median called-up, distributed and residual value ratios for private real estate funds reveal that, with the exception of only 2005, all vintage years to have paid distributions have median total value to paid-in capital (TVPI) greater than 100%, meaning more capital has been paid out or remains in fund portfolios than was initially invested (Fig. 3).

Since September 2012, real estate strategies have seen their three-year rolling horizon IRR increase from 1.3% to 15.0% three years later (Fig. 4). Despite this improvement, in the three years to September 2015, the horizon IRR for real estate was lower than other private capital strategies, with venture capital (+17.9%), buyout (+17.3%) and mezzanine (+15.6%) outperforming real estate.

-0.4%

0.2%

4.0%

7.3%

4.5%

5.6%

1.5%

2.5%2.6%

2.3%1.9%

2.6%2.6%

1.7%

3.4%3.9%

1.3%

4.5%

1.9%

4.4%

2.4%2.3%

2.3%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Q1

20

10

Q2

20

10

Q3

20

10

Q4

20

10

Q1

20

11

Q2

20

11

Q3

20

11

Q4

20

11

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

12

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

13

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Q3

20

15

Fig. 1: Closed-End Private Real Estate Quarterly Change in NAV, Q1 2010 - Q3 2015


Av

era

ge

Ch

an

ge

in N

AV

fro

m P

rev

iou

s Q

ua

rte

r

0

20

40

60

80

100

120

De

c-0

7

Jun

-08

De

c-0

8

Jun

-09

De

c-0

9

Jun

-10

De

c-1

0

Jun

-11

De

c-1

1

Jun

-12

De

c-1

2

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Jun

-15

PrEQIn Real Estate PrEQIn Real Estate DebtPrEQIn Opportunistic PrEQIn Value Added

Fig. 2: PrEQIn Index: Real Estate by Strategy, December 2007 - June 2015


Ind

ex

Re

turn

(R

eb

ase

d t

o 1

00

as

of

31

-De

c-2

00

7)

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Residual Value to Paid-in Capital (%) Distributions to Paid-in Capital (%)

Called-up to Committed Capital (%)

Fig. 3: Closed-End Private Real Estate Funds: Median Called-up, Distributed and Residual Value Ratios by Vintage Year


Vintage Year

0%

5%

10%

15%

20%

25%

3 Y

ea

rs t

o M

ar-

12

3 Y

ea

rs t

o J

un

-12

3 Y

ea

rs t

o S

ep

-12

3 Y

ea

rs t

o D

ec

-12

3 Y

ea

rs t

o M

ar-

13

3 Y

ea

rs t

o J

un

-13

3 Y

ea

rs t

o S

ep

-13

3 Y

ea

rs t

o D

ec

-13

3 Y

ea

rs t

o M

ar-

14

3 Y

ea

rs t

o J

un

-14

3 Y

ea

rs t

o S

ep

-14

3 Y

ea

rs t

o D

ec

-14

3 Y

ea

rs t

o M

ar-

15

3 Y

ea

rs t

o J

un

e-1

5

3 Y

ea

rs t

o S

ep

-15

Real Estate Buyout Venture Capital Mezzanine

Fig. 4: Three-Year Rolling Horizon IRRs, March 2012 - September 2015


Thre

e-Y

ea

r H

oriz

on

IRR

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Top Quartile NetIRR Boundary

Median Net IRR

Bottom QuartileNet IRR Boundary

Fig. 5: Closed-End Private Real Estate Funds: Median Net IRRs and Quartile Boundaries by Vintage Year


Ne

t IR

R s

inc

e In

ce

ptio

n

Vintage Year




Conferences

Conference Name Date Location Conference Organiser Preqin Speaker Discount Code

Alternative Investment Consultants Summit

21 July 2016Old Greenwich,

CTInvestment Management

Institute– –

MIPIM Japan8 - 9 September

2016Osaka MIPIM – –

Australian Investors Summit12 - 13

September 2016Melbourne marcus evans Summits – –

1st Annual Real Estate Family Offi ce & Private Wealth Management Forum

12 - 13 September 2016

Chicago, IL IMN –10% Discount -

PQ10

Europe GRI14 - 15

September 2016Paris GRI – –

FundForum Africa14 - 16

September 2016London Informa –

15% Discount - FKP2429PNWB

15th Global Real Estate Private Equity Summit: West

14 - 15 September 2016

Los Angeles, CA iGlobal Forum –10% Discount -

Preqin

5th Annual Real Estate CFO Forum19 - 20

September 2016New York IMN –

10% Discount - PQ10

Ai CEO Institutional Investment Summit 2016

19 September 2016

New York Africa investor – –

DACH Elite Summit25 - 27

September 2016Frankfurt marcus evans Summits – –

Global Investors Summit3 - 5 October

2016Montreux marcus evans Summits – –

European CLO Summit17 - 18 October

2016Monaco Opal Finance Group – –

PWM Greater China Summit 201617 - 19 October

2016Macao marcus evans Summits – –

Private Wealth Management APAC Summit

17 - 19 October 2016

Macao marcus evans Summits – –

International Wealth Management Forum Fall 2016

20 - 21 October 2016

Miami, FLInternational Forum

Group– –

FundForum NextGen Distribution25 - 27 October

2016Boston, MA Informa – –

Family Offi ce & Private Wealth Management Forum West

26 - 28 October 2016

Napa, CA Opal Finance Group – –

"Distressed Energy & Real Estate:Investments & Workouts"

27 - 28 October 2016

Houston, TX IMN –10% Discount -

PQ10

Borrower & Investor Forum on Real Estate Mezzanine Financing & Subordinated Debt

1 November 2016

New York IMN –10% Discount -

PQ10

Real Estate Game Change2 November

2016Chicago, IL Privcap – –

Elite Summit7 - 9 November

2016Montreux marcus evans Summits – –

Real Estate Crowdfunding Summit9 November

2016Los Angeles, CA iGlobal Forum –

10% Discount - Preqin

Endowment & Foundation Forum14 - 15

November 2016Boston, MA Opal Finance Group – –

Wealth Management Americas 201615 - 16

November 2016Miami, FL Terrapinn – –

2nd Annual Real Estate Family Offi ce & Private Wealth Management Forum

16 - 17 November 2016

Miami, FL IMN –10% Discount -

PQ10




Europe GRI

Date: 14 - 15 September 2016

Information: www.europegri.com

Location: Intercontinental Paris Le Grand, Paris, France

Organizer: Global Real Estate Institute

Europe GRI is a get-together of senior investors, lenders and developers active in Europe. Much like a conversation in your own living room, the discussion format enables you to interact and engage. Quickly find the right partners for your business, build high value relationships, and keep the conversation afterwards.

15th Global Real Estate Private Equity Summit: West


Information: www.iglobalforum.com/repe15

Location: Los Angeles, California

Organizer: iGlobal Forum

iGlobal Forum is pleased to announce the upcoming 15th Global Real Estate Private Equity Summit: West, taking place in Los Angeles on September 14th and 15th. As the global markets continue to be unpredictable, the focus on the full range US real estate across asset classes has become exceedingly important. The real estate markets are continuously brimming with new competitors, from new domestic players to international investors funneling capital into US real estate, driving prices to an all-time high.

5th Annual Real Estate CFO Forum East


Information: http://www.imn.org/cfoeast16

Location: New York, NY

Organizer: Information Management Network

IMN’s CFO Forum returns to New York for the fifth year in a row. This forum is the premier venue for in-house financial professionals to hear best practices and industry developments from a wide spectrum of real estate industry peers. The day and a half program gives attendees an opportunity to glean insight from throughout the industry. Discount Code = PQ10

1st Annual Real Estate Family Office & Private Wealth Management Forum (Midwest)


Information: http://www.imn.org/mwfamilyoffice16

Location: Chicago, USA

Organizer: Information Management Network

IMN invites you to attend the 4th edition of the Real Estate Family Office and Private Wealth Management Forum, use discount code PQ10 for the best rate.

IMN’s May Family Office event welcomed 370 participants, including 180+ family offices and wealth advisors and this conference is expected to be even bigger!


Find out how Preqin’s range of real estate products and services can help you:

www.preqin.com/reo

The Q2 2016

Preqin Quarterly Update:

Real Estate

If you want any further information, or

would like a demo of our products,

please contact us:

New York:

One Grand Central Place

60 E 42nd Street, Suite 630

New York

NY 10165

Tel: +1 212 350 0100

Fax: +1 440 445 9595

London:

3rd Floor

Vintners’ Place

68 Upper Thames Street

London

EC4V 3BJ

Tel: +44 (0)20 3207 0200

Fax: +44 (0)87 0330 5892

Singapore:

One Finlayson Green, #11-02

Singapore 049246

Tel: +65 6305 2200

Fax: +65 6491 5365

San Francisco:

One Embarcadero Center

Suite 2850

San Francisco

CA 94111

Tel: +1 415 316 0580

Fax: +1 440 445 9595

Hong Kong:

Level 9, Central Building

1-3 Pedder Street

Central, Hong Kong

Tel: +852 3958 2819

Fax: +852 3975 2800

Manila:

Pascor Drive

Sto. Niño

Parañaque City

Metro Manila 1700

Philippines

Email: [email protected]

Web: www.preqin.com

Preqin Real Estate Online

With global coverage and detailed information on all aspects of the real estate asset class, Preqin’s industry-leading Real Estate Online service keeps you up-to-date on all the latest developments in the real estate universe.

Source new investors for funds and co-investments

Find the most relevant investors, with access to detailed profi les for over 5,300 institutional investors actively investing in real estate.

Discover and scrutinize real estate deals and exits

View detailed information on deal and exit size, type and location of assets purchased or sold, deal participants, service providers involved in the deal and much more.

Identify potential investment opportunities

View in-depth profi les for over 5,100 private real estate funds encompassing all strategies, including core, core-plus, value added, opportunistic, debt, distressed and fund of funds.

Find active fund managers in real estate

Search for fi rms actively targeting real estate investments and see how much dry powder they have available, with detailed profi les on over 3,500 fund managers globally.

Analyze the latest real estate fundraising activity

See which fund managers are currently on the road raising a real estate fund and which will be coming to market soon. Analyze fundraising by fund strategy, property type and location.

Benchmark performance

Identify which fund managers have the best track records, with performance benchmarks for real estate funds and performance details for over 1,500 individual named funds.

Examine fund terms

Use our Fund Terms Calculator to model fee changes and evaluate typical terms charged, the implications of making changes to fees and how they vary across type and strategy.

the q2 2016 preqin quarterly update real estate · for any decisions of whatever nature the reader...

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