Luxembourg Real Estate Investment Funds at record highs across the board
2019 has been a strong year for growth within Luxembourg real estate investments funds (REIFs), according to data from a survey conducted by ALFI.
The number of launches of Reserved Alternative Investment Funds (RAIFs) focused on property grew from 27 in 2018 to 63 in 2019, an increase of 133 per cent. The number of Alternative Investment Funds has also seen a marked expansion, from 27 manager-regulated AIFs in 2018, to 41 in 2019 – an increase of 51.9 per cent. Non-regulated AIFs have seen 28 launches in 2019, bringing the combined number to 69 – a 155 per cent increase.
Corinne Lamesch, Chairperson of ALFI, says: “This data from the ALFI REIF Survey 2019 cements Luxembourg’s position as the most desirable location to launch and maintain real estate funds, and demonstrates their continued and growing appeal amongst institutional investors and fund managers across the globe.”
The increase in the number of fund launches corresponds with a rise in net asset under management (AuM) of Luxembourg real estate funds. As of Q3 2019, it stands at €82.2 billion for funds regulated and supervised by the CSSF; up by 12.4 billion from EUR69.84 billion over the past 12 months. This represents an increase of 17.7 per cent. The 2019 survey also found there to be 37 funds which invest their capital without a geographical focus, compared to 20 funds in 2018; an increase of 85 per cent.
ALFI’s Director General, Camille Thommes, adds: “A 17.7 per cent increase in the AuM of REIFs is a clear indication of Luxembourg’s attractiveness for investors, and the demand for these investment vehicles. This is due in no small part to the suitability of Luxembourg’s REIFs for investment strategies spanning the globe, evidenced by the increase of multi-geographical and multi-sectoral funds, underlining Luxembourg’s strength as a cross-border distribution hub.”