InvenTrust Properties Corp. has agreed to sell its student housing platform to a joint venture formed among the $269.5 billion Canada Pension Plan Investment Board, Singapore’s GIC and Scion Group.
From the Current Issue
As the world came out of the global financial crisis, those investors who had not sworn off real estate completely flocked to the corest of core investments. As a result, open-end funds, which generally focus on lower-risk investment strategies and sectors, saw an increase in new fund offerings about five years ago, only to see those numbers begin to decline in 2014.
Alignment of interest — you could say it is the Loch Ness Monster of institutional investing. Some claim to have seen it, many are sure they know what it looks like, but its existence remains in doubt. Institutional investors continue to demand alignment, and managers continue to design structures to provide it, but the monster remains elusive.
Fund managers have closed on increasingly more capital each year for the past three years. In contrast, the number of new fund offerings has fallen in each of those same years. According to Institutional Real Estate, Inc.’s FundTracker database, 656 closed-end funds have launched in the past three years, with a total equity fundraising target of $358 billion.
Some of the biggest economic news of 2015 happened at the very end of the year. The Federal Open Market Committee raised the federal funds rate target at its meeting in mid-December — the first change since the rate hit virtually zero in 2008 and the first increase since 2006, increasing the rate from a range of 0–0.25 percent to a range of 0.25–0.5 percent.
The oil supply glut has deepened these past few weeks since OPEC decided not to restrict crude production, citing expectations for an expansion in global demand of 1.3 million barrels per day in 2016 alongside a contraction in non-OPEC supply. In the United States, mild weather and still-elevated unconventional production are contributing to the market’s oversupply, depressing prices.
We spend a great deal of time thinking about forecasts to improve our analytical thought processes and, ultimately, our forecasting abilities, focusing not on what do we forecast but how can we become better at forecasting. Drawing upon the rich recent literature on prediction from behavioral economics, psychology and political science, we can strive to make better predictions and, as a result, better investment decisions.
Eight years into the financial cycle, the memory of the impact and subsequent financial dislocation of the global financial crisis is for many all too clear. Indiscipline led to overuse of debt, misalignment of strategies and a risky approach that contributed to the eventual global crash.
The past year was one of highs and lows. Reflecting on 2015, let’s take a look at some of the highlights from a year’s worth of editorials.
The dance of capital continues to twirl its way from East to West and compete with domestic capital. What is in store for investors interested in North American property markets in 2016? According to ULI and PwC’s recent Emerging Trends in Real Estate: United States and Canada 2016, these are the top 10 trends investors can expect.
A new global real estate index has been launched. The Global Real Estate Fund Index, or GREFI, represents an integration of data from three member-driven, nonprofit organizations: NCREIF, INREV (the European Association for Investors in Non-Listed Real Estate Vehicles) and ANREV (the Asian Association for Investors in Non-Listed Real Estate Vehicles).
London’s West End was the world’s highest-priced office market for the second straight year, and Hong Kong’s Central, Beijing’s Finance Street, Beijing’s Central Business District and Hong Kong’s West Kowloon rounded out the top five most expensive spots in the rankings, according to CBRE Research’s semi-annual Global Prime Office Occupancy Costs survey.
GI Partners has acquired the data center facility located at 11525 Main St. in Broomfield, Colo. The acquisition was made through TechCore, an approximately $1 billion discretionary core real estate fund managed by GI Partners on behalf of the $289 billion California Public Employees’ Retirement System.
Was 2015 a good year or a bad year for REITs? Well, that depends on whether their performance is being compared with private real estate or the broader equity market.