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PRESS RELEASE: Investment strategies with a focus on Real Estate and Affordable Housing

PRESS RELEASE: Investment strategies with a focus on Real Estate and Affordable Housing

Amsterdam, November 30, 2021: Phenix Capital Group has today released its Impact Report: Deep Dive on Real Estate Funds, which shows that fundraising targets of real estate funds are higher for developed markets. The report provides data from the Phenix Capital’s Impact Database, one of the most complete sources in the impact investing market, and makes clear that although in previous years some capital commitments eventually targeted Global, Asia, Middle East, and Africa, North America is the historically preferred market, followed by Europe.

Key report takeaway:

  • More than €185 billion has been committed towards real estate funds since 2015.

  • Current fundraising for real estate funds is higher in Europe (63%) followed by North America (29%) and historically it has been higher in North America (52%) followed by Europe (32%). 

  • The total target size of real estate funds launched in 2021 is higher in North America (47%), followed by Europe (38%). 

  • The average target size of real estate funds currently open for investment is €368 million.

SDGs targeted: These SDGs are the most targeted by real estate funds: SDG 11, Sustainable cities and communities (almost 20 billion), SDG 3, Good health and well-being (around 7 billion), SDG 13, Climate action (more than 5 billion), SDG 8, Decent work and economic growth (around 4 billion), and SDG 10, Reduced inequalities (around 3 billion).

Leading Sectors: Affordable housing is the leading sector with 37% of historical capital commitments and 36% of current fundraising targets. It is followed by other sectors, such as Social Infrastructure, Climate, Renewable Energy, and Green Buildings.

Interview: Next to the insights and analytics provided by the Phenix Capital's Impact Database, the report also features an interview with a fund manager focused on Real Estate and affordable housing, which exemplify current fund strategies. Patron Capital Partners tells us about their fund "Women in Safe Homes", which was launched in December 2020, in collaboration with leading women’s sector organisations and networks.

"It addresses the mismatch between high demand for and limited supply of safe and secure homes for women in need", explains the Keith Breslauer, Managing Partner.

Their fund buys and refurbishes properties which are then leased to specialist women's sector organisations (WSOs), who in turn "let them at affordable rates to women at risk of homelessness, whilst also providing them with individualised and specialist support enabling them to rebuild their lives".

In a deep dive in the Phenix Capital’s Impact Database, in November 2021, 124 funds with a focus exclusively on the Real Estate and Affordable Housing were found. From those funds, 46 are currently open for investment.


 

About Phenix Capital Group

Phenix Capital Group is an impact investment consultant that enables institutional investors to make impact investments. Founded in 2012, the company has been dedicated to building a solid knowledge based for the impact investing industry, educating asset owners, and catalysing institutional capital to impact investing.

Phenix Capital’s Impact Database provides investors with access to and intelligence on the impact fund market opportunities available to them. Three main variables used to construct, monitor and update the dataset: funds considered have an impact proposition; institutional scale; and target market-rate returns. Impact Database now includes detailed overview of more than 1,800+ impact funds.

For more information or interview requests, please contact our team at info@phenixcapitalgroup.com or call + 31 20 240 27 31.

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