With central banks raising interest rates and lenders under pressure, the era of easy, cheap credit is over. The sharp reversal of conditions throws bad decisions into stark relief. Property purchases based on false assumptions are already proving difficult to justify.
Across the world, property developers and investors in the 2020s are living history large: pandemic, then war in Eastern Europe attended by nuclear sabre-rattling and continental energy crunches. Add epic international supply-chain snags, then worldwide inflation and rising interest rates. And 2023 may deliver a new malady to the mix: a global economic recession.
The specialised knowledge needed to develop and professionally manage a data centre — including site selection, power and space planning, environmental controls for temperature and humidity, and ensuring connectivity and data security — all contribute to the higher barriers to entry for potential investors into data centres, relative to other real estate sectors.
From shifts in consumer shopping habits and increasing demand for fast delivery to the need for modern logistics space in the right locations to enable transportation-efficient and resilient supply chains, investors should keep in mind four key logistics trends globally.
I absolutely don’t have any plans to retire anytime soon. I plan to continue to work in this business until my body and mind make it impossible for me to do so any longer. I also have no plans to sell the business anytime soon, despite the rumours some people have been spreading.
Institutions continue to increase target allocations to real estate, with the expectation that attractive buying opportunities will emerge over the next several years, according to the 10th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate.
Institutions continue to increase target allocations to real estate, with the expectation that attractive buying opportunities will emerge over the next several years, according to the 10th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate.
Singapore-based SC Capital Partners has formed a data centre investment programme with a wholly owned subsidiary of the Abu Dhabi Investment Authority. In other news, an ADIA subsidiary has committed US$500 million as the anchor investor to Mumbai-based Kotak Investment Advisors’ 13th fund in the firm’s Kotak Realty Fund series.