Privatereal estate fundraising fell to its lowest level in the third quarter since thefirst quarter of 2013, the latest data from research firm Preqin showed.
Insum, 32 fundraising vehicles raised $19 billion during the period, down from$31 billion raised by 46 vehicles in the second quarter. In thefirst quarter of 2013, the last time totals were as low, 48 vehicles raised $10billion.
Preqinnoted in its report that the third-quarter fundraising total could rise by asmuch as 15% "as more information becomes available."Andrew Moylan, Preqin's head of real estate products, still had a positive readon the market.
"The$19 billion raised is not far off recent quarters, and while fundraising thisyear has not quite reached the levels seen in 2015, there remains a great dealof institutional appetite for real estate," he said in the third-quarterreport, noting that half of the 10 largest real estate funds on the road haveheld interim closes.
Capitalconcentration is also increasing, and North America-focused funds aredominating the market. The 32 vehicles that closed during the third quartermarked the lowest number of closed funds since 2003.
Thereare currently 513 private real estate funds, targeting $182 billion, in themarket. Dry powder held by private equity real estate firmstotaled $230 billion as of October 2016, up from $210 billion at the end of2015.
Thethird quarter also saw a drop-off in the number of Europe-focused fundsclosing. Moylan said it is uncertain to what extent the outcome of the Brexitreferendum has impacted fundraising totals on the continent.