Pvt equity property funds raise $9.8bln in Q1-data

* Fundraising tough in near term

* Spending more than 18 months fundraising on average

* Investors want evidence of property sector stabilisation

LONDON, April 20 (BestGrowthStock) – Private equity property funds
raised $9.8 billion globally in the first quarter of 2010, down
37.5 percent on the year, with near-term fundraising remaining
tough until the real estate sector settles further, research
shows.

Funds raised have been below $10 billion for three
consecutive quarters, since halving to $20 billion in the third
quarter of 2008, research and consultancy firm Preqin said in a
statement on Tuesday.
Funds were also taking longer to complete their fundraising.
On average, funds that issued final closes in the March quarter
had been on the market for 18.8 months, against 18.2 months in
full-year 2009 and 12.6 months in 2008, the research showed.

“With investors receiving very few distributions from their
existing fund commitments, it is not necessary for them to
invest at the same pace as they did in previous years in order
to maintain their real estate allocations,” said Andrew Moylan,
manager of Preqin’s real estate data.

“Fundraising is set to remain challenging, and although some
firms will successfully close funds in the coming months,
investors will need to see more in the way of profitable exits
and stabilisation in property prices before conditions improve
significantly,” he said.

However, most investors indicated they would be more active
in 2010 than in 2009, Preqin said.
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(Reporting by Andrew Macdonald; Editing by David Cowell)

Pvt equity property funds raise $9.8bln in Q1-data