Data Centers and Food Trading Among Institutional Investors' Favorites in Specialty Real Estate Funds

Institutional investors are showing increasing interest in specialist real estate investment funds, particularly in data centers, light industrial real estate and food retail. According to the seventh LAGRANGE Fund Monitor survey, these sectors show the highest growth rates among special real estate asset classes. For the first time, the purchase of shares via the secondary market surpasses interest in primary market funds.

On the index scale of 1 to 11, indicating reduction to increase in real estate allocations, a score of 6.21 shows modest expansion of investments in AIF special real estate. Infrastructure investments are of particular interest with a score of 7.59, indicating a strong preference for renewable energy and diversified funds.

Interest in residential real estate remains strong while that in office real estate is declining. The Benelux region is the most popular for real estate investments outside Germany, followed by France and the United Kingdom. For infrastructure funds, Germany remains the favorite destination.

These trends reflect a shift in institutional investor preferences towards new real estate asset classes and highlight the growing appeal of infrastructure investments.