Of the almost $1 trillion (€901 billion) spent on commercial real estate around the globe in the 12 months between the start of April 2018 and the end of March 2019, one-third involved capital from cross-border investors. In its Active Capital report for 2019, Knight Frank puts this large proportion of globe-trotting capital down to a need for large investors to both diversify risk and chase enhanced returns.
From the Current Issue
One of the results of post-GFC increased regulation in the banking sector has been the rise of alternative lending sources in the real estate debt market.
Commercial real estate markets in Asia Pacific have delivered strong total returns for investors in recent years.
The European self-storage sector is at an earlier stage of development compared to its US counterpart. Institutional investment in the sector has yet to take off in a meaningful way, despite strong underlying fundamentals and attractive investment performance. Between 2015 and 2018, just €1.2 billion was invested in the sector, less than a tenth of the amount channeled into US self-storage over the same period.
Risk. It’s been defined by some as the fact that more things can happen than will happen. It’s also been equated to degrees of uncertainty, although some would argue that uncertainty and risk are not the same thing.
For the private market, return premiums over 10-year government bonds have widened over the past six months for Continental Europe, the UK and the US.
Ares Management has completed a final closing of its Ares European Real Estate Fund V, which has raised €1.78 billion from investors.
Office transaction volumes in Spain, Norway and Poland have soared in the first half of 2019, in some cases more than doubling the amount registered during the same period last year.
WeWork’s IPO prospectus has been mocked and vilified for its eyebrow-raising calculations, loose corporate governance and bizarre internal dealings with its CEO and co-founder Adam Neumann.
Europe remained the top destination for Asian outbound capital in the first half of 2019, according to a recent report by CBRE.
Despite a weakening in economic growth in Europe, real estate fundamentals in the region remain healthy, particularly in the prime CBD office and industrial markets.