Institutional capital continues to favour large real estate funds sponsored by proven investment managers. Funds that closed during the first half of 2014 totalled US$39.4 billion, according to the Institutional Real Estate FundTracker database. Of that first-half total, 12 mega-funds (US$1 billion plus) accounted for 67 percent — US$26.6 billion — of the equity raised.

The largest fund to close during the first half of the year was The Blackstone Group’s Blackstone Real Estate Partners Europe IV, which raised US$7 billion. Runners-up included PIMCO’s Bank Recapitalization and Value Opportunities Fund II (US$5.5 billion), GI Partners’ GI Partners Fund IV (US$2 billion) and Kildare Partners