Our increasingly digitised world places ever-greater demands on where and how we store that data. The boom in artificial intelligence, driven in particular by recent advances in generative AI, adds further pressure on a speciality sector that’s increasingly mainstream. AI demands far-greater power supply and a higher density of servers, translating into a higher burn rate for energy.
Tenants, residents, investors and regulators are all knocking on the door of real estate and infrastructure actors, demanding green, affordable and equitable solutions. Heightened social inequality and wellness issues, combined with more frequent and severe extreme weather events are elevating the need to address environmental, social and governance (ESG) risks and opportunities.
Fund managers and investors are primarily concerned with two aspects when deploying capital: risk and return. While the concept of return is broadly well understood, managing risk in the real estate private debt sphere is often less so. This stresses the importance of knowing how risk can be reduced and mitigated, and the common instruments and tools used to achieve this for the benefit of investors.
Recent investment data show that liquidity is starting to return to the parts of the UK market believed to offer the strongest growth prospects, such as logistics and residential. The continuation of this trend, however, rests on increased capital allocation to UK real estate from international investors. Is this something we can expect to see in the near term?
While industries such as finance and healthcare have embraced digital technologies to streamline processes and improve customer experience, the real estate industry has been slow on the uptake. Why? Several reasons are likely.
Areas for the use of proptech are advancing rapidly, enabling capital allocators to dig deeper into their investment decisions. From machine learning and digital twins to occupancy management systems, a wealth of tools are available now. Which tech should real estate investors be using? And what hurdles still exist in their adoption?
Sustainability legislation threatens to make many office buildings obsolete, increasing the impetus for investors to implement strategies that proactively improve their office portfolios.
Hines has released its new global investment outlook, Opportunistic Patience Prevails. Hines’ global CIO David Steinbach introduces his view of the “Four Ds” systemically reshaping the economic, social and real estate landscape: deleveraging, deglobalisation, decarbonisation and demography.
GLP, a global business builder, developer, owner and operator of logistics real estate, data centres and renewable energy, has launched Ada Infrastructure, a new global data centre business with 850 megawatts of IT capacity across Japan, the United Kingdom and Brazil.