With near-record pricing for all main property types globally and a backdrop of rising interest rates, we continue to search for value creation opportunities in off-market situations, according to Partners Group’s 2019 Private Markets Navigator.
Historically, the question over whether to hedge property portfolios against currency risk was largely left unanswered by real estate investors, given their tendency to favour investments in their home countries. More recently, however, real estate has become increasingly globalised, driven by the world’s largest sovereign wealth and pension funds, many of which have dedicated worldwide real estate mandates. As a consequence, currency risk has become increasingly ingrained in investment decisions at an institutional level.
Retail parks seldom win any beauty contests. Nevertheless, they have long been in high demand among investors and have established themselves as an independent asset class within the retail property sector. The run on retail parks does have one drawback, however. Prices are rising and achievable yields are decreasing in all key markets.
The arrival of ESG assessments in the last few decades has transformed the industry. So much so, in fact, that a property deal could be won or lost on an ESG scorecard. Although the ESG formula has three pillars, the emphasis remains on the green leg. Energy efficiency is often improved by better harnessing a property’s passive design characteristics — its direct and indirect sunlight, natural ventilation, and solar power.
CapMan Real Estate has acquired a former Carlsberg warehouse in Copenhagen for its Nordic Real Estate II fund.
Academics have long tried to interpret the mechanisms that lie behind financial decisions. Within the domain of behavioural finance, there is a special emphasis on “heuristics and biases”. Heuristics, which means “to discover” in ancient Greek, is about using shortcuts to produce satisfactory decisions within a limited time-frame.
AMPERE Gestion, a subsidiary of CDC Habitat, the property arm of France’s Caisse des Dépôts, has attracted €906 million to its latest French intermediate housing fund, the largest amount raised in the European residential property sector in 2018.
Managers have continued to purchase Iberian industrial assets in the early stages of 2019.
A large minority of European real estate investors expect the market to decline over 2019.
Transactions in Germany’s commercial real estate market totalled €60.1 billion last year, setting a new record and surpassing 2017’s figure by €2.5 billion.
JLL has revealed that London maintained its position as the top city for global real estate investment for the second year in a row in 2018. Twelve cities — London, New York, Paris, Seoul, Hong Kong, Tokyo, Shanghai, Washington DC, Sydney, Singapore, Toronto and Munich — have appeared in JLL’s top 30 ranking every year for the past decade and account for 30 percent of all real estate investment.
Over the course of a given year, we talk to hundreds of investors and their investment managers during our normal outreach efforts. These include the discussions that take place at our editorial advisory board meetings around the globe, as well as those at our VIP conference programs, CEO summits, Springboard programs and Sponsor Briefings.