INREV: Record €32b raised for global real estate debt vehicles

Nonlisted real estate debt products continue to attract attention from institutional investors and investment managers, with a record high of €32 billion ($38 billion) raised globally in 2019, according to the INREV Debt Vehicles Universe 2020 study.

This reflects a strong uptick in demand for non-listed real estate debt, representing an approximately 50 percent increase on the 2018 results and is significantly higher than in any given year since INREV records began in 2013. According to the global Investment Intentions Survey 2020, investors in North America and Asia Pacific have a strong preference for nonlisted real estate debt strategies. In Europe, where the private debt market is still immature, debt is not yet among the top three preferred strategies for investors in this region — but it is growing strongly.

Debt vehicles posted strong performance expectations in 2019, with the average target IRR for all vehicles of 7.7 percent. Vehicles with a senior loan s