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European closed-end property funds take advantage of favorable market conditions
Research - MAY 5, 2021

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European closed-end property funds take advantage of favorable market conditions

by Kali Persall

Although the number of closed-end property alternative investment funds in Europe has declined in recent years, the total net fund assets of all closed-end property funds has increased, according to an analysis of Bundesbank statistics.

At the end of 2019, 1,446 closed-end property funds were reported to the Bundesbank; however, this figure was down to 1,311 vehicles — or 10 percent — by the end of 2020. However at the same time, the total net fund assets of all closed-end property funds rose from €26.8 billion ($32 billion) at the end of 2019 to €28.5 billion ($34 billion) at the end of 2020.

In addition, cash inflows were relatively low overall in the past year with a net inflow of €45 million ($54 million); however, there were considerable fluctuations.

Michael Schneider, managing director of INTREAL, attributes the decline in the number of funds to funds being liquidated.

“Closed-end property funds that were set up many years ago are appar

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