The secondaries European real estate market has become broader and deeper as investors look to rebalance their portfolios and managers aim to see business plans through to their completion with certain assets in their closed-end funds.
As a result, deals are becoming more complex and varied, and many transactions that were not traditionally badged as secondaries are now profiled as such. Speaking to Institutional Real Estate Inc, Raymond Fang, a partner in the real estate and funds group at law firm King and Spalding, said the market is now seeing a rise in general partner (GP)-led continuation vehicles and direct secondaries transactions where a specialist investor acquires an interest in a fund, joint venture (JV) or other real estate holding structure.
Fang said rebalancing of portfolios are leading to “upstairs” investors in funds seeking liquidity while maintaining exposure to the asset class, often reallocating away from traditional property sectors into ones
