Money raising by realty-focused PEs sluggish
Money by realty-focused PEs declined to over a four-year-low level in April-June quarter of this year as institutional investors remained uncertain in committing capital. Investors have turned carefull and are now looking at more established markets. In this quarter, 21 real estate funds made aggregate commitments of 10.3 billion US dollars, down 72.16% from 37 billion US dollars in a year period.
During this time of instability, investors are especially cautious and therefore they are looking towards more established markets, rather than emerging markets.
Anticipating slump in demand amid the global economic downturn, various investors have reviewed their investment portfolios and reconsider their allocations to PE real estate.