Number of Luxembourg real estate funds grows at double-digit rate
The latest annual Real Estate Investment Fund survey published by the Association of the Luxembourg Fund Industry (ALFI) suggests the number of funds in the sector has grown by an average of 27% annually since 2006.
The 2012 report said that the number of REIFs launched through calendar 2011 was twice that of 2010, or 26 direct REIFs, taking the total to 170 funds. The report also covers developments in Risk Capital Investment Companies (SICARs) and REIF funds of funds.
Analysis of the most common underlying investments made by the REIFs suggest industrial and office space continues to attract most funds.
The trend towards simplified fund structures and strategies has continued, and most funds – 71% – are closed ended, which ALFI said reflects the illiquid nature of property as an asset class.
While fund sizes have fallen back compared to some years ago, the target NAVs used have started to increase again. ALFI said this reflects growing confidence in property valuations.
Investors in the Luxembourg REIFs come mainly from Europe, but a significant number come from other regions worldwide.
To read the full report click here: Luxembourg Real Estate Fund Survey 2012