Private equity real estate funds are likely to ramp up their investments in 2017 globally even as they face a tough property market, said alternative assets industry data and intelligence provider Preqin. Preqin’s global survey of over 180 real estate fund managers finds that two-thirds of firms intend to deploy more capital over the next 12 months compared to the previous year, and almost half are planning to invest significantly more.
Fund managers have record amounts of uncalled capital (or dry powder) at their disposal, but this has led to increased levels of competition, and placed pressure on asset pricing. Managers see valuations as a key concern for the year ahead, and many have reduced their performance objectives as a result, Preqin said.
Read more: The Economic Times