, ,

Sovereign Wealth Funds Continue to Ramp Up Property Allocations

The proportion of global sovereign wealth funds (SWFs) allocating capital to commercial real estate rose from 54% in 2013 to 59% last year, despite the fall in price of oil, a major capital source for funds in the Middle East, Asia and Europe, according to a new report by London-based Prequin.State-owned SWFs, which invest globally in assets such as stocks and bonds, real estate, precious metals and alternative investments such as hedge funds and private equity funds, are usually capitalized from foreign-exchange reserves held by their nation’s central bank or from commodity export revenues such as oil and gas.