Preqin - Real Estate Spotlight

Real Estate Spotlight is the monthly newsletter published by Preqin packed full of vital information and data, all based on our latest research into the private equity real estate industry. Real Estate Spotlight combines information from our online products Real Estate Online and Real Estate Capital Sources.

Real Estate Spotlight
August 2012
Feature Article
Private Real Estate Investors' Alternative Routes to Market Investors allocating to private real estate often also access the asset class in a number of alternative ways. This month's feature article explores how institutions are investing in the asset class.

August 2012 Volume 6 - Issue 8

Page 2

FEATURED PUBLICATION:
The 2012

Preqin Industry News
The latest news and data from the real estate sector. This month we turn our attention towards North America-focused private real estate fundraising, looking at recent closes and investors seeking to commit to the asset class. Page 5

Preqin Private Equity Fund Terms Advisor

alternative assets. intelligent data.

Fundraising Update
The 2012 Preqin Private Equity Fund Terms Advisor www.preqin.com/fta A round-up of fundraising in Q2 2012, including a look at the most recent fundraising stats for the quarter and the largest funds to hold a final close. Page 6

The Facts
New York: One Grand Central Place 60 E 42nd Street Suite 2544 New York, NY 10165 +1 212 350 0100 London: Equitable House 47 King William Street London, EC4R 9AF +44 (0)20 7645 8888 Singapore: Asia Square Tower #07-04 8 Marina View Singapore, 018960 +65 6407 1011 w: www.preqin.com e: info@preqin.com Twitter: www.twitter.com/preqin LinkedIn: Search for Preqin
alternative assets. intelligent data.

Residential-Focused Fund Managers - Key data on their fundraising. Page 7 Europe-Based Public Pension Funds - How are these LPs investing? Page 9 Wealth Manager Survey - New data on these important private investors. Page 10 Conferences - Details of upcoming real estate conferences from around the world. Page 11

Free Subscription:
Click here to sign up to receive your free edition of Real Estate Spotlight every month!

You can download all the data in this month's Spotlight in Excel. Wherever you see this symbol, the data is available for free download on Excel. Just click on the symbol and your download will begin automatically. You are welcome to use the data in any presentations you are preparing; please cite Preqin as the source.

Feature

Private Real Estate Investors' Alternative Routes to Market

Download Data

Private Real Estate Investors' Alternative Routes to Market
With investors scrutinizing their portfolios ever more closely in recent years, Forena Akthar looks at the varied ways investors in private real estate funds access the asset class and how this varies by investor size and location. Fig. 1: Breakdown of Active Real Estate Investors by Current and Target Allocation to Real Estate
50%

Fig. 2: Private Real Estate Investors' Alternative Routes to Market by Investor Location
60%

Proportion of Private Real Estate Investors

45%

44% 44%

53% 50% Direct Real Estate 40% 31% 30% 24% 20% Listed Real Estate 10% 24%

Proportion of Real Estate Investors

40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 5% 5 - 9.9% 10 - 14.9% 15 - 19.9% More than 20% 9% 6% 4% 7% 6% 18% 28% 34%

Target Allocation to Real Estate

Current Allocation to Real Estate

0% North America Europe

Allocation Range (% of AUM)

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

Real estate is an important part of many sophisticated investors' portfolios, and while the pace of new institutional investments in the asset class has certainly slowed since the economic downturn, the majority of institutions are below their strategic target allocations to the asset class and may well increase their activity in the mid to longer term. The current and target allocations to real estate of institutional investors as a proportion of total assets are broken down in Fig. 1. A significant 44% of investors active in real estate have a target allocation in the range of 5-9.9% of total assets, and almost half (47%) have target allocations of 10% or more. For many investors, real estate clearly forms a core part of their overall investment strategies. Investors in real estate can gain access to the asset class in a number of ways. Institutions can make direct property investments, purchase shares in public real estate investment trusts (REITs) or other listed property securities, and also invest indirectly through private real estate funds. Prior to the economic downturn, private real estate funds saw rapid growth and attracted a wide range of institutional investors. Each of these investment methods has both advantages and disadvantages, and institutions will invest through different methods based on their experience, resources, liquidity requirements and risk/ return objectives. Investors that commit to private real estate funds often utilize one or more additional methods of accessing the asset class. Trends can be seen among investors in different locations and with differing amounts of assets under management. For example, as Fig. 2 shows, North

America-based private fund investors are more likely to invest in listed real estate than in direct property alongside their fund investments. The opposite is true for European institutions, with 53% investing directly and only 24% investing in listed real estate. Fig. 3 shows that real estate fund investors with total assets of less than $1bn are least likely to include direct or listed real estate investments in their property portfolios. Many smaller institutions will not have the resources required to maintain a direct portfolio. With increasing investor size, however, activity in direct and listed real estate increases. A significant 75% of private real estate investors with more than $10bn in assets also have direct property investments. This includes institutions which have large direct allocations and also commit to private funds in order to gain exposure to markets to which they are underweighted or that they might not be able to access through their direct portfolios. Investors with larger assets under management also have a stronger preference for co-investments, joint ventures, and separate accounts; the appetite for these investment structures grows with increasing investor size. There has been increased appetite for these types of investment in recent years, with institutions seeking the skill, resources, and unique opportunities that many real estate firms can offer, but with the additional control over their portfolio that might not be available through a blind-pool fund commitment. It is clear, however, that the resources and knowledge required for these investments mean that typically only larger investors look to gain exposure through these routes.

2 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Feature

Private Real Estate Investors' Alternative Routes to Market

Download Data

Fig. 3: Private Real Estate Investors' Alternative Routes to Market by Investor Total Assets
80% 75% 70% 60% 50% 40% 30% 22% 20% 10% 0% Less than $1bn $1-10bn $10bn+ 18% Listed Real Estate 39% 33% 50% Direct Real Estate

Fig. 4: Appetite for Co-Investments, Joint Ventures, and Separate Accounts by Investor Size
80%

Proportion of Private Real Estate Investors

Proportion of Private Real Estate Investors

71% 70% 60% 50% 40% 33% 30% 23% 20% 10% 0% Less than $1bn $1-10bn $10bn+ 20% 16% 26% 28% 58%

68%

Make CoInvestments

Invest in Joint Ventures

Invest in Separate Accounts

Total Assets

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

Seventy-one percent of institutions with $10bn or more in total assets invest in joint ventures, and 68% utilize separate accounts. In contrast, for investors with less than $1 billion in assets under management, just 20% invest in joint ventures and 16% through separate accounts (Fig. 4). Although changes in the market have prompted investors to scrutinize their real estate fund portfolios more closely and examine other routes

through which they might invest in the asset class, the private real estate fund model is unlikely to fall out of favour with institutions investing in property. While some of the larger investors may increasingly invest through joint ventures or separate accounts, many of these institutions will already have real estate portfolios incorporating a range of types of real estate investment. For many of the small- and mid-sized investors, investing directly or through separate account structures is not an option, and private funds will remain one of the most common

3 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Feature

Private Real Estate Investors' Alternative Routes to Market

Download Data

ways in which these investors access the asset class. For most, it will be a case of maintaining the right mix of investments and utilizing the methods most appropriate to them and which will be most beneficial to their portfolios.

Data Source:
Preqin's Real Estate Online is the industry's leading source of intelligence on the private real estate industry. This constantly updated resource includes details for all assets of the asset class, including fund performance, fundraising, institutional investor profiles, fund manager profiles and more. All of Preqin's exclusive intelligence is available on Real Estate Online. For more information please visit: www.preqin.com/realestate

4 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

News

Industry News

Download Data

Industry News
Carla Henry and Jessica Sutro provide a rundown of the latest real estate news, featuring exclusive data from Preqin's analysts. Preqin Online subscribers can click on the investor/firm/fund names to view the full profiles.
This month's chart gives a broad picture of North America-focused private real estate fundraising over the period of 2005 to July 2012, showing small increases in recent years (2010-2011) in both the number of vehicles completing their fundraising and the aggregate capital they raised. Preqin's most recent data on real estate fundraising in Q2 2012 reveals that many investors appear to be continuing to invest in more established markets, particularly North America. Funds with a primary focus on North America raised the most capital in Q2 2012, with 17 funds receiving aggregate commitments of $4.7bn during this period, and representing 63% of all the equity raised by real estate vehicles in the quarter. North America's success in fundraising in Q2 2012 appears to be continuing, as a number of North America-focused funds recently reached a final close. Mesirow Financial Real Estate Value Fund, managed by Mesirow Financial Institutional Real Estate ­ Direct, closed on $389mn in capital commitments, while ABR Chesapeake Fund IV, managed by Alex. Brown Realty, closed on $276mn. Additionally, Wheelock Street Real Estate Fund, a vehicle pursuing an opportunistic strategy and managed by Wheelock Street Capital, closed on $525mn. The number of North America-based investors looking to make commitments to the asset class in the next 12 months complements recent fundraising success in the region. The University of Rochester Endowment, with $1.6bn in total assets, is likely to invest in one private real estate fund in the next 12 months, committing approximately $10mn. The endowment plan will likely seek a global value added vehicle, but is unsure exactly when it will make this commitment. Additionally, the endowment plan prefers fund managers with a strong track record, and therefore will not invest in first-time funds. Another North America-based investor seeking opportunities in the asset class is the Texas Municipal Retirement System (TMRS), which is looking to invest $500mn in core real estate, and is currently conducting a search for managers. TMRS intended to commit $100mn to H/2 Special Opportunities II, but the funds were redirected towards the core mandate when the pension fund could not resolve contract issues with the fund manager. Interested managers are advised to contact the pension plan's real estate consultant, ORG Portfolio Management, and the fund will make recommendations to the board in September 2012. Even some North America-based investors not currently looking to invest in real estate nevertheless remain open to investing in the asset class in the longer term. Children's Healthcare of Atlanta Foundation, with $2.5bn in assets under management, will not look to invest in real estate in the next 12 months as it is at its target allocation of 10%, but will maintain a long-term preference for real estate funds. Similarly to TMRS, the foundation prefers

Chart of the Month: North America-Focused Private Real Estate Fundraising, 2005 - July 2012
180 160 140 120 100 80 66.3 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 Jan-July 2012 39 28.1 31.3 55.6 35.4 37 Aggregate Capital Raised ($bn) 73.6 117 123 156 141 No. of Funds Raised 96 82 86

11.9

Source: Preqin Real Estate Online

experienced managers with strong track records that demonstrate that their interests are strongly aligned with those of their investors.

What's New?
Do you have any news you would like to share with the readers of Spotlight? Perhaps you're about to launch a new fund, have implemented a new investment strategy, or are considering investments beyond your usual geographic focus? Send your updates to spotlight@preqin.com and we will endeavour to publish them in the next issue. All of Preqin's exclusive intelligence is available on Real Estate Online, the industry's leading source of information on private real estate funds, managers and investors in the asset class. Subscribers can click here to view more industry news and information.

5 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Fundraising

Fundraising Update ­ Q2 2012

Download Data

Fundraising Update ­ Q2 2012
Andrew Moylan looks at fundraising in the second quarter of 2012. Fig. 1: Quarterly Global Closed-End Private Real Estate Fundraising, Q1 2007 - Q2 2012
120 111 16 100 96 84 80 72 65 60 52 40 39.1 26.3 20 39.6 35.2 28.1 42.7 42.2 43 37 38 29 18.5 16.1 15 14.2 11.8 10.312.7 39 38 42 34 36 42 33 27 15.9 11.913.9 13.1 10.8 Aggregate Capital Raised ($bn) 8 6 4.7 4 7.5 2
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

Fig. 2: Closed-End Private Real Estate Fundraising by Primary Geographic Focus, Q2 2012
18 17

82 77 63

No. of Funds Raised

14 12 10

No. of Funds Raised

77

5

5

9.9 7.9

Aggregate Capital Raised ($bn) 0.9

0

1.8

0 North America Europe Asia

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

Fig. 3: Largest Closed-End Private Real Estate Funds to Hold a Final Close in Q2 2012
Fund Niam Nordic V Partners Group Global Real Estate 2011* Colony Distressed Credit Fund II AGRE U.S. Real Estate Fund Exeter Industrial Value Fund II Prudential Senior Housing Partners IV Wheelock Street Real Estate Fund Hines Russia & Poland Fund Forum Asian Realty Income III Archstone Multifamily Partners Cornerstone Enhanced Mortgage Fund Firm Niam Partners Group Colony Capital Apollo Global Real Estate Management Exeter Property Group Pramerica Real Estate Investors Wheelock Street Capital Hines Forum Partners Archstone Cornerstone Real Estate Advisers Strategy Opportunistic Fund of Funds Debt, Distressed Debt, Distressed, Opportunistic, Value Added Value Added Value Added Opportunistic Opportunistic Opportunistic Core-Plus, Value Added Debt Size (mn) 719 EUR 800 USD 780 USD 713 USD 615 USD 568 USD 525 USD 390 EUR 374 USD 350 USD 315 USD Focus Nordic Global Global US US North America US Poland, Russia Asia, Australasia US North America

*Real estate funds of funds are not included in the aggregate fuandraising fig-

Source: Preqin Real Estate Online

Fig. 4: Closed-End Private Real Estate Funds in Market over Time, Q1 2009 - Q3 2012
500 428 381 390 378 376 403 363 383 378 450 400 350 300 250 200 150 100 50 0
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Fig. 5: Average Time Taken for Closed-End Private Real Estate Funds to Achieve a Final Close, 2007 - 2012
20.0 19.0 17.0 16.1 14.5 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 11.4 8.8

Average Time Spent on the Road (Months)

439 435 434

450 449 453 No. of Funds in Market

18.0 16.0

228 227 199 173 178 147 134 132 138 160 138 148 165 166 159 Aggregate Capital Target ($bn)

Year of Final Close

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

6 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Fund Managers

Residential-Focused Real Estate Fund Managers

Download Data

Residential-Focused Real Estate Fund Managers
Jonathan Ma takes a look at managers of residential-focused real estate funds. Fig. 1: Key Facts: Residential-Focused Closed-End Private Real Estate Funds
Total Number of Funds Currently on the Road Aggregate Target of Funds Currently on the Road ($bn) Aggregate Capital Raised ($bn) 2006 - July 2012 Aggregate Capital Raised ($bn) in the Last 10 Years 75 14.5 37.3 44.7

Subscriber Quicklink:
Subscribers to Preqin's Real Estate Online can click here to access detailed profiles for 773 real estate fund managers that invest in residential assets. Not yet a subscriber? To see how Real Estate Online can help you, please visit www.preqin.com/reo

Source: Preqin Real Estate Online

Fig. 2: Annual Residential-Focused Closed-End Private Real Estate Fundraising, 2006 - July 2012
60

Fig. 3: Residential-Focused Closed-End Private Real Estate Funds in Market by Geographic Focus
60

50

50 No. of Funds Raised

50

50 No. of Funds in Market

40

39

37 32

40

30 24 20

28

30

20 10.8 Aggregate Capital Raised ($bn) 8 5.8 3.8 2.6 2010 4.5 1.1 0 2006 2007 2008 2009 2011 Jan-July 2012 North America Europe 1.9 10

17 9.8

10

8.7

Aggregate Capital Target ($bn)

8 2.7 Asia and Rest of World

0

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

Fig. 4: Largest Solely Residential-Focused Closed-End Private Real Estate Funds in Market by Target Size
Firm Selene Investment Partners Carmel Partners Century Bridge Capital Henderson Global Investors - Property Alliance Residential Company Encore Housing Opportunity Fund Cordea Savills ROC|Bridge Partners Mill Group Tuckerman Group Fund Selene Residential Mortgage Opportunity Fund II Carmel Partners Investment Fund IV Century Bridge China Real Estate Fund CASA Partners V Alliance Residential Fund II Encore Housing Opportunity Fund II Prime London Residential Development Fund Real Estate Opportunity Capital Fund II Investors in Housing Fund Tuckerman Multi-Family Fund V Primary Fund Focus US US China US US US UK US UK US Strategy Debt, Distressed Debt, Distressed, Opportunistic, Value Added Opportunistic Core-Plus, Value Added Opportunistic, Value Added Opportunistic Debt, Opportunistic Distressed, Opportunistic Distressed, Opportunistic Debt, Distressed, Opportunistic Target Size (mn) 1000 USD 700 USD 400 USD 400 USD 400 USD 400 USD 250 GBP 375 USD 200GBP 300USD

Source: Preqin Real Estate Online

7 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

2012 Preqin Private Equity Fund Terms Advisor
Key features include: · Actual terms and conditions data for over 1,800 funds, including management fees and mechanisms for reduction after the investment period, carry, carry distribution methods, hurdles, preferred return, fee rebates, no-fault divorce clause, GP commitments, investment period. Benchmark terms and conditions data for funds of all different types: buyout, venture, real estate, distressed, mezzanine, fund of funds, secondaries and more... Results of our LP survey - the most comprehensive study of current opinions on fund terms and conditions ever conducted. Data and analysis on the actual fees and costs incurred by LPs, with listings showing costs for 1,250 named vehicles. Full access to our updated Fund Terms Advisor Online module, which enables you to model the real economic impact of fund terms and conditions, and download detailed fund terms for further analysis. Comprehensive analysis on all aspects of private equity fund terms and conditions including how conditions have changed over time and what variations exist amongst funds of different type, size and region.

alternative assets. intelligent data.

A vital tool for all private equity firms, placement agents and law firms involved with the fund formation process, the updated 2012 Preqin Fund Terms Advisor contains valuable intelligence for all those investing in private equity, and for those advising LPs.

The 2012

Preqin Private Equity Fund Terms Advisor

· · · ·

alternative assets. intelligent data.

www.preqin.com/fta

·

For more information please visit www.preqin.com/fta
I would like to purchase the 2012 Preqin Private Equity Fund Terms Advisor:
Single Copy: $1,495 + $40 Shipping £885 + £10 Shipping 1,060 + 25 Shipping Additional Copies: $180 + $20 Shipping £110 + £5 Shipping 130 + 12 Shipping
Shipping costs will not exceed a maximum of £15 / $60 / 37 per order when all shipped to same address. If shipped to multiple addresses then full postage rates apply for additional copies.

Data Pack: $300 / £175 / 185
Data Pack contains all underlying data for charts and graphs contained in the publication. Only available alongside purchase of the publication.

Completed Order Forms: Payment Details:
Post (to Preqin): One Grand Central Place, 60 E 42nd Street, Suite 2544, New York, NY 10165 Equitable House, 47 King William Street, London, EC4R 9AF Asia Square Tower 1 #07-04 8 Marina View Singapore 018960 Fax: +44 (0)87 0330 5892 +1 440 445 9595 +65 6407 1001 Email: info@preqin.com Telephone: +1 212 350 0100 +44 (0)20 7645 8888 +65 6407 1011
American Express, four digit code printed on the front of the card. Visa and Mastercard, last three digits printed on the signature strip.

Shipping Details:
Name: Firm: Job Title: Address:

Cheque enclosed (please make cheque payable to `Preqin') Credit Card Visa Amex Please invoice me Mastercard

Card Number: Name on Card: Expiration Date: City: Security Code: Post/Zip: Country: Telephone: Email:

Investors

Europe-Based Public Sector Pension Funds

Download Data

Europe-Based Public Pension Funds
Farhaz Miah takes a look at Europe-based public pension funds investing in real estate. Fig. 1: Key Facts: Europe-Based Public Pension Funds
Average Allocation to Real Estate (% of AUM) Average Target Allocation to Real Estate (% of AUM) 10.0 11.2

Subscriber Quicklink:
Would you like to see details of 198 Europe-based public pension funds investing in real estate, with information on their areas of interest, key contacts, future plans and more? Click here to view the full list. Not yet a subscriber? To see how Real Estate Online can help you, please visit www.preqin.com/reo

Source: Preqin Real Estate Online

Fig. 2: Breakdown of Europe-Based Public Pension Funds that Invest in Real Estate by Assets under Management
2% 15% 22%

Fig. 3: Breakdown of Europe-Based Public Pension Funds that Invest in Real Estate by Overall Real Estate Allocation

13%

2% 28%

Less than $1bn
15%

$0-99mn

$100-249mn

15%

$1-4.99bn

$250-499mn

$5-9.99bn
16% 27% $1-4.99bn $500-999mn

$10-49.99bn 47% $50bn+

$5bn+

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

Fig. 4: Fund Strategy Preferences of Europe-Based Public Pension Funds
100% 90% 80% 89%

Fig. 5: Real Estate Investment Preferences of Europe-Based Public Pension Funds
100% 90% 18% Currently Investing 48% 1% 3%

Proportion of Investors

70%

80%

Proportion of Investors

60% 50% 40% 30% 20% 10% 0%
Opportunistic Distressed Secondaries Value Added Core-Plus Fund of Funds Debt Core

70% 60% 50% 40% 30% 49% 20% 10% 0% Private Funds Direct Listed 3% 3% 8% Never Invested Considering Investing 85% 1% 2% 78% No Longer Investing

48%

45% 40% 37%

14%

11%

7%

Real Estate Investment Type

Source: Preqin Real Estate Online

Source: Preqin Real Estate Online

9 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Wealth Managers

Wealth Manager Survey

Download Data

Wealth Manager Survey
An analysis of the key stats from Preqin's latest survey of wealth managers investing in alternative assets. Fig. 1: Wealth Managers' Primary Method of Sourcing New Investment Opportunities Fig. 2: Amount of Capital Alternatives Wealth Managers/ Clients Plan on Committing to Alternatives in Next 12 Months
45% Internal Proprietary Research 55% 40% 38% 32%

Proportion of Respondents

35% 30% 25% 21% 20% 15% 10%

Recommendations

29%

Existing Manager Pool

10%

6% 5% 3% 0% Did Not Invest in Significantly Last 12 Months More Capital but Will in Next than in Last 12 12 Months Months Slightly More Same Amount Slightly Less Significantly Less Capital than in of Capital as in Capital than in Capital than in Last 12 Months Last 12 Months Last 12 Months Last 12 Months

Unsolicited Approach from GPs

6%

0%

0%

10%

20%

30%

40%

50%

60%

Proportion of Respondents

Source: Preqin

Source: Preqin

Wealth managers and their clients represent a significant part of the private investor universe, pooling together capital from several different types of private investors in alternatives. In order to investigate this important sub-sector of the investor universe, Preqin conducted in-depth interviews with 35 wealth managers, all of which are active investors in one or more alternative assets, representing a global sample of the wealth management industry. Wealth managers in alternatives take a highly active approach in sourcing and evaluating the investments they both recommend to and make on behalf of their clients. Fig. 1 shows the primary process through which these gatekeepers identify potential investment opportunities for their advisory and discretionary mandates. Only 10% of wealth managers primarily source investment opportunities by turning to their existing manager pool. Instead, the vast majority (84%) actively seek and identify investment opportunities in more proactive ways. This is either through their own internal proprietary research, or based upon recommendations from their peers and other market participants. It is noteworthy that more than half (55%) of wealth managers primarily rely on their own in-house investment research when sourcing investments in alternatives. On the whole, wealth managers that actively invest in alternatives expect to increase their level of activity in the market over the next 12 months, when compared to the previous 12 months, as shown in Fig. 2. Fifty-three percent of wealth managers interviewed by Preqin expect to increase or significantly increase their exposure to alternatives, while a further 3% that did not make investments in 2011 intend to invest in the next 12 months. Just 6% of wealth managers expect to commit less to alternatives over the coming 12 months, and no wealth managers expect to significantly reduce the level of their clients' commitments to alternatives.

Fig. 3: Regions Viewed by Wealth Managers as Presenting the Best Opportunities in Real Estate
50% 45% 40% 35% 30% 26% 25% 20% 16% 15% 10% 5% 0% Asia Europe Middle East North America South America 16% 47% 47%

Source: Preqin

Geographically, 47% of wealth managers see North America as presenting attractive opportunities for real estate investments, with the same proportion seeing opportunities in Asia. Europe is seen as presenting attractive opportunities by 26% of wealth managers, while the Middle East and South America are each seen as attractive by 16% of firms.

Data Source:
Preqin's Real Estate Online now features in-depth profiles of wealth managers, an important investor group involved in the asset class. For more information and to arrange a walkthrough of the service, please visit:

www.preqin.com/wealth

10 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com

Conferences

Forthcoming Events

Download Data

Conferences Spotlight
Conference GRI Europe Summit 2012 Russia GRI 2012 Real Estate Asset Enhancement World Asia Real Estate Investment World Latin America 2012 India GRI 2012 7th Real Estate Private Equity Summit Real Estate Latin America Forum The Alternative Asset Summit SALT Singapore 2012 Brazil GRI 2012 New Europe GRI 2012 Asia GRI 2012 Dates 11 - 12 September 2012 19 - 20 September 2012 25 - 27 September 2012 2 - 3 October 2012 3 - 4 October 2012 10 October 2012 17 - 18 October 2012 17 - 19 October 2012 17 - 19 October 2012 6 - 7 November 2012 26 - 27 November 2012 4 - 5 December 2012 Location Paris Moscow Singapore Miami Mumbai New York Rio de Janeiro Las Vegas Singapore Sao Paulo Warsaw Hong Kong Organizer Global Real Estate Institute Global Real Estate Institute Terrapinn Terrapinn Global Real Estate Institute iGlobal Forum Latin Markets Alternative Assets SkyBridge Capital Global Real Estate Institute Global Real Estate Institute Global Real Estate Institute

All rights reserved. The entire contents of Real Estate Spotlight are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Real Estate Spotlight is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent financial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Real Estate Spotlight. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confirm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Real Estate Spotlight are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Real Estate Spotlight or for any expense or other loss alleged to have arisen in any way with a reader's use of this publication.

11 Real Estate Spotlight, August 2012

© 2012 Preqin Ltd. www.preqin.com