Market anticipates release of €13b real estate assets by 2021

The INREV Funds Termination Study 2019 reveals that 50 European closed-end non-listed real estate funds are scheduled to terminate by 2021, releasing a potential €13.2 billion ($14.6 billion) of assets back onto the market. By 2028, 97 funds are expected to have terminated, representing €23 billion ($25 billion) of net asset value (NAV).

Most terminations are likely to take place in 2020, accounting for a total of 23 funds. Those funds terminating in 2021 show the strongest 12-year annualized performance with average returns of 5.6 percent.

They are also the largest funds terminating over the coming three-year horizon, each with an average NAV of €578 million ($639 million), representing a total of €5.6 billion ($6.2 billion).

Most of the funds with a single-country strategy terminating between 2019 and 2021 (50 percent of the total) are focused on the United Kingdom. The timing coincides with, but isn’t necessarily driven by, Brexit. Over the same per