Changing faces: Real estate investment management is evolving and will have implications for the money that is allocated to real estate
Capital seeking deployment in European real estate continues to diversify by geography and source. As the market approaches the final phase of the legacy deleveraging, this is driving changes in the structure of the property investment management industry.
North American and European pension and life funds, which comprise the majority of capital, have already diversified routes to market: from pooled and segregated mandates with fund management companies and unlisted funds to equity stakes in listed European property companies and allocations to global private equity funds. As well as, for some, direct property investments.
The current wave of structural change in the property investment management business is driven by a global hunt for yield in a sustained ultra-low interest rate environment and artificial market liquidity, aided by central banks’ loose monetary policies.
In all, changes to the property investment management industry can be attributed to: re