As the world’s largest sovereign wealth funds benefit from rising energy prices and growing economies, many are expected to increase their allocation to the real estate asset class. A report from German real estate investment firm Degi predicts allocations will rise to 15 percent over the next few years, from an average of four to 11 percent.
SHUAA Partners has raised $165m to invest in hotels, resorts and serviced apartments in the Middle East and North Africa. The firm plans to invest in the development of five- and four-star hotels, resorts, budget business hotels and serviced apartments.
Canadian privately-owned real estate investor, RealStar Group, is entering into private equity real estate territory by seeking to raise a €300 million opportunity fund to acquire assets in both the UK and Continental Europe.
The New York-based firm has closed its Apollo Value Enhancement Fund VII, bringing its value-added investment fund series to $2.7bn in total committed equity.
Mark Preston succeeds Jeremy Newsum as chief executive officer of British property group Grosvenor, owned by the Duke of Westminster. Preston was former head of the firm’s UK operations and fund management business.
The Boston-based real estate investment firm appoints former Invesco executive Ben Maudling to lead its operations in Central and Eastern Europe. Taurus president Peter Merrigan says the firm is also planning new offices in Peru and Greece.
As Japanese REITs continue trading at an average 35 percent discount, the Japan and California-based firm says it is creating a $450m vehicle to acquire them. Dalton says it is looking to buy mid-sized REITs.
INREV is overhauling its definitions of core, value-added and opportunity funds after finding that measuring internal rates of return as well as leverage is not the best way to classify them.
Private equity real estate firms globally raised $40bn during the first half of 2008, according to proprietary data from sister publication PERE Magazine. This tally puts GPs on course to raise more than the record-breaking totals of last year.
Following its first deal in the UK, the firm has made the first purchase through its joint venture with Scius Partners, investing €40m in a retail park outside Stockholm.