Closed-end funds: Placement volume fell in 1st half year
Investor interest in closed-end real estate funds fell noticeably in the first half of 2008. According to a Scope survey, €1.57bn of equity was placed during that period, 34% below the volume raised in the same period last year. The survey indicates that this fund sector has taken a beating due to investor uncertainty following the sub-prime crisis. Even though the fundamentals are not expected to change in the short term, Steffen Möller, chief executive analyst at Scope, expressed confidence for the second half of the year: “Based on many similar reports, real estate funds in the second half of the year may pick up speed, for fund issuers that have been holding back over the past few months will come out with new products.” Among the fund issuers that, against the trend, were able to increase their placements in the first half year are Dr. Peters Gruppe, Commerz Real, and Nordcapital. Other big players, US-Treuhand and IVG for example, brought almost no new real estate products to the market during that period.