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14 February 2012
Stockholm
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22 February 2012
London
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03-04 May 2012
Vienna, Austria
Property fund commitments halved, debt levels a concern - INREV
Property fund managers raised e10.2bn in committed capital in 2008, a drop of 46% over 2007, and the process slowed dramatically in the second half, according to the European Association of Non-Listed Property Funds INREV. At its annual conference in Athens, INREV said debt problems for unlisted real estate funds launched in 2006 and 2007 are a genuine concern. Some 43% of fund of funds managers are very concerned about the vehicles they invest in breaching covenants. The vintages likely to cause most concern are from 2006 and 2007 when peak levels of capital flowed in and when the propensity to use debt was high.
The study shows that investors have been reluctant to commit fresh equity to funds recently.