MGPA, the London-based private equity real estate investor part-owned by Australia's Macquarie Bank, has closed its third real estate fund with total equity commitments of $5.2bn. When borrowings are added to the fund, they would take its potential spending power to more than $15bn.

The MGPA Fund III is split into two regional private equity real estate funds, one focused on Europe, the other on Asia.

Meanwhile, west London-based property fund manager Europa Capital has raised €750m (£590m) of equity commitments for two new funds for European property investment. This will give Europa Capital spending power in excess of €2.5bn. Europa Capital has raised more than two-thirds of the equity commitments from North America for Europa Fund III, its third pan-European fund.

There has been a spate of recent fundraisings in the property sector, which many have taken as a sign that investors remain confident in the long-term prospect of returns from the real estate market. Private equity has been particularly active, with funds raised or being raised by the market's main participants, such as Carlyle, Blackstone, JER Partners and Apollo.

There are few markets that have not see a decline in property values over the past year, although many investors now hope the worst is over. The new funds will look to exploit distress where possible and, more pertinently, cheaper pricing on good quality property.

Jim Quille, MGPA chairman and chief executive, said that the MGPA fund, the largest it has raised to date, had attracted commitments from investors spread across North America, Australia, Europe and the Middle East.

Mr Quille said that the fund would invest across the world, focusing particularly on emerging economy countries where there was still value to be had. The UK, he said, still looked too expensive, but Asian and eastern European markets were attractive.

The fund can buy both commercial and residential property and will have a focus on asset and development management. It has already lined up a number of investments in Poland and Greece.