RCA in the commercial property press:

Private Equity Preparing for Property Boom

Financial News reports: Although the value of private equity real estate fundraisings fell 65% to $40.6bn (€30.5bn) last year – a larger percentage decline than in the wider private equity industry, Preqin data shows – the tide appears to be turning. At the beginning of this year the industry was seeking to raise $173.6bn in property funds.

Growing confidence stems from a belief that dealmaking will take off this year. Direct property acquisitions by private equity funds fell 55% to $22.6bn last year, according to data from New York-based real estate research firm Real Capital Analytics. At the property boom’s peak in 2007, real estate deals accounted for a quarter of all private equity deals. At the low point in the crisis they made up only 6% of all property deals, but this has since risen.

Chad Pike, co-head of real estate at Blackstone Group, said property loans on banks’ balance sheets had not yet begun to be unwound. He said: “In Europe we are just now starting to see deals that private equity real estate will be involved in.

We have taken the stance of being patient and waiting for banks to formulate disposal strategy and timing. We are starting to see reasonably good deal activity in the US and think Europe is six to 12 months behind. For the higher return-seeking capital this is really only just beginning.”

Articles related to this topic:

 Global Office Sales Down 50%
 PE Firm Starwood Raises $2.8 Bil. for Distressed Real Estate
 Health Care Reform May Help Distressed Commercial Real Estate
 JPMorgan, UBS Property Funds May Get $100 Million Investments
 Economic 'Fogginess' Explored and 2010 Predictions Offered
 Commercial Real Estate Market Showing Signs of Life
 Pittsburgh Tower Challenges Blackstone
 World's Richest Man, Carlos Slim, Agrees to Buy 417 Fifth Ave
 New RICS-RCA Commercial Real Estate Report

Posted by: Nina Turner

<< Prev

Next >>