RCA Insights

Chart: Bulging Pipeline for M&A Activity in US

By on September 12th, 2018

U.S. megadeal activity has grabbed headlines this year with such mammoth multibillion-dollar closings as Unibail-Rodamco’s purchase of Westfield and Brookfield’s purchase of GGP, both significant transactions involving U.S. malls. Along with the recent Prologis/DCT Industrial merger, 2018 is shaping up to be one of the most significant periods for entity-level activity in the U.S. over the past several years.

The chart below displays the volume of entity-level transactions in the U.S. over the past five years plus 2018 year-to-date closed and contracted entity-level transactions. The dashed line marks the percentage share of total U.S. deal activity attributed to completed M&A deals.

Merger volume is already accounting for a larger portion of total sales volume – which includes individual property sales and portfolio deals – than the prior two years. Individual property sales have come in roughly at the same pace this year as in 2017. If the additional mergers under contract close by year-end, this upward trend will buoy 2018 deal volume through the remainder of the year.

1809 US megadeals MAIN_150_final-01

Four other significant deals in the pipeline could add an estimated $28 billion across all core property types by year-end. These deals include Brookfield’s purchase of Forest City Realty Trust and Blackstone’s purchase of Gramercy Property Trust.

The next edition of US Capital Trends will report on the latest deal activity, as well as debt and equity capital flows for the first half of 2018. This report will be available to RCA clients on Sept. 26. If you’re interested in becoming an RCA client please contact us to learn more. 

Alexis Maltin and Hermann Lademann provided data analysis for this article.