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Delaware statutory trust fundraising rises 27% through September

Investors also raised $357M in DST equity in September, down from $461M in the same month last year.

Reported · Written up by our desk · Commercial

Bisnow reports that equity raised for Delaware statutory trusts totaled $7.5B as of the end of September, a 27% increase versus $5.9B raised through September last year, based on data from Mountain Dell Consulting.

The outlet also found that September DST equity was lower at $357M compared with $461M in September a year earlier.

Over the past few years, Delaware statutory trusts have grown in popularity as a passive way for individuals, particularly baby boomers, to invest in commercial real estate while deferring capital gains taxes, with fund managers handling the underlying assets.

Bisnow notes the rise in demand has led more institutional investors to build DST platforms to support the market, including Ares Real Estate.

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