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Ninety closed-ended funds to expire in next three years

INREV says the termination of ’first generation funds’ will release €49.5bn of real estate into the market in 2009 and 2010.

The European Association for Investors in Non-Listed Real Estate Vehicles (INREV) recent Fund Termination Study, based on interviews with fund managers and investors, has found that 90 closed ended funds will expire in the next three years.
 
The study revealed that 59 percent of core funds will extend or roll over their funds while opportunistic funds will be liquidated.
 
The finding was made public at the 10th annual Expo Real property trade fair in Munich in which 23,800 delegates attended this week. Some 1,823 exhibitors took part in the event which was held in six halls covering 63,000 square meters.
 
Views on the current debt difficulties largely dominated discussion panels since Monday but delegates have been unable to agree on the longevity or severity of the current credit crunch.

At one session hosted by PrivateEquityRealEstate.com’s sister publication, Private Equity Real Estate, the panel did agree, however, that there is no shortage of capital entering private equity real estate funds. Jos Short, founder of London-based Internos Investors, pointed out that sovereign funds have vast sums available to pump into the sector.

Other members of the panel included Edmund Craston, head of real estate investment banking in Europe at Lehman Brothers, and Peter Kasch, managing partner of Catalyst Capital.