Friday Letter

The two types of real estate managers are becoming increasingly alike

Private equity firms and investment managers, which traditionally had different risk-return profiles, are converging for one important reason.

Private real estate is seeing a mismatch between sentiment and performance

The asset class is now viewed in a notably more positive light, despite the fact returns have yet to bounce back.

What is the value of a capital adviser?

Chatham Financial’s acquisition of Hodes Weill reflects how the placement agent’s role in private real estate continues to evolve.

Real estate fundraising looks very different without the Big Two

The absence of Blackstone and Brookfield from the market has made way for smaller funds, new manager names and shorter fundraising times.

ABP’s development push is a contrarian play

In investing €1.25bn to build new homes, the Dutch pension fund is becoming an outlier in an increasingly development-shy market.

Digital Realty’s fundraise further demonstrates a new kind of contender

The data center giant’s $3.25bn debut fund adds to a growing cohort of listed specialists making significant inroads in private real estate capital markets.

Investors still have room for decarbonization strategies

In raising $370m for its first global ‘brown-to-green’ real estate fund, LaSalle has proven there is no time like the present to put sustainability front and center.

Iran conflict casts doubt over European real estate’s growth outlook

Off the back of a wave of positive market sentiment, the region has more to lose should the war continue to put pressure on the price of oil.

In a volatile world, risk management gets more granular

With the Iran conflict creating further uncertainty for private real estate executives, intensive diversification is becoming the answer.