InsightsKAP’s insights on private equity investor relations and fundraising
Welcome back to the weekly Re-KAP where we round up market and LP news from the RE PE marketplace (Nov. 29, 2017)
Altus Group recently published its 2017 CRE Innovation Report, which surveyed 400 global commercial real estate (CRE) professionals about their perspectives on the development and adoption of technology in the CRE industry. In the past 24 months, as new applications and solutions emerged, so too did the buzzword “PropTech.” According to CB Insights, PropTech companies received nearly $6.2 billion of funding since 2013 (see chart below.) Other key findings of this year’s survey include:
- 58% of respondents are using significantly more CRE-specific applications now than they were three years ago.
- 50% of respondents said they are facing a significant shortage of skilled technology staff or are not adequately staffed and need more technical resources.
- IREI recently released its Value-Added Funds Investment Guide which features details on a sampling of value-added funds in the global investment marketplace. The guide lists 59 funds, 15 of which are expected to close before the end of Q1 2018.
- CBRE Global Investors has held a final close for its most recent U.S. value-added vehicle with $1.34 billion of capital commitments from 25 institutional investors. The firm describes U.S. Value 8 fund as executing a “cycle-aware investment strategy,” as it will target lower leverage and focus on better quality assets. CBRE closed its predecessor vehicle in July 2015 on $1.3 billion of capital.
LIMITED PARTNER NEWS
- Orange County Employees’ Retirement System has earmarked $100 million for Waterton Residential Property Venture XIII. The $14.8 billion public pension previously committed $75 million for Waterton’s twelfth fund, which reached a final close on $511 million in 2015. Waterton is a value-add, multifamily investor targeting properties across major U.S. markets. Orange County’s consultant Meketa is slated to provide the Q2 2017 real estate performance report at today’s board meeting.
- Watertown Retirement System is seeking proposals from qualified investment managers specializing in distressed/opportunistic real estate investment funds. The $154 million U.S. pension has a current real estate allocation of 9.4%.
- Washington State Investment Board (WSIB) has confirmed $1 billion of follow-on commitments to two fund managers. The $120 billion public pension invested $500 million each in its separate accounts with Aevitas Property Partners and Evergreen Real Estate Partners. Earlier this fall, WSIB approved a 3% increase to their real estate allocation target.