Companies and funds reported raising $33.18 billion from investors in the second quarter of for
commercial real estate-related deals and refinancings, a 25% drop from the first quarter when $44.88 billion was raised. The second quarter amount was a 9% drop from a year ago.
CoStar Group tracks the fundraising activity of thousands of entities on an ongoing basis and adds about 125 new entities per month.
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Of the money raised in the second quarter, about $26 billion was to be used primarily for investments and acquisitions. The remainder was primarily targeted for repaying debt.
Of that amount targeted for new investments, an estimated $21.9 billion was earmarked for property-related investments, the remainder for debt, mortgage or securities purchases.
Of the total amount raised in the second quarter, $13.8 billion was from publicly offered shares in REITs and real estate operating companies with about half of the amount expected to be used for debt repayment or refinancing.
The other $19.4 billion raised in the fourth quarter came from private fund raising efforts and was all earmarked for new investment. Of that amount, pooled investment funds including private equity and hedge funds raised $8 billion.
The largest bulk of funds raised (an estimated 24%) was earmarked primarily for office investments. Industrial was the second most targeted property type at 18%. Funds targeting health care, land and multifamily investments raised about 14% each of the total; retail about 10% and lodging 6%.
Eight sponsoring firms each reported raising $1 billion or more in the quarter.
* Brookfield Asset Management Inc. $2.64 billion
* Lion Industrial Trust $2.02 billion
* Blackstone Group $1.85 billion
* Hancock Natural Resource Group Inc. $1.85 billion
* Angelo, Gordon & Co. $12 billion
* Westbrook Realty $1.05 billion
* Annaly Capital Management Inc. $1.03 billion
* Boston Properties Inc. $1 billion
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