As if in response to a growing chorus of GPs worried about capital sources drying up, news from CalPERS indicates that the supply of capital for real estate private equity is only expanding.
3 min read · 01 February 2013
A new report from Deutsche Bank predicts the global real estate market will grow by 40 percent in the next five years. The bad news is returns from property investment will be levelling off.
2 min read · 01 February 2013
Last month, a private equity real estate bidding war broke out in a very unlikely place: Italy, where a clutch of investors faced off in a competition for two publicly listed real estate funds. According to industry observers, it was the first time in quite a while, if ever, that a competitive bid situation developed for Italian real estate assets. The two funds, Tecla Fondo Uffici and Berenice Fondo Uffici, have a combined enterprise value of approximately €1.6 billion.
2 min read · 01 February 2013
The reported KKR bid for real estate-laden Macy’s brings to mind an important similar deal on the other side of the pond: Sainsbury’s.
3 min read · 01 February 2013
In life, only death and taxes are guaranteed. For private equity real estate LPs, management fees probably rank a high third.
2 min read · 01 February 2013
June was a good month for private equity in India. New data from advisory firm Grant Thornton shows that, for the first time, the value of private equity deals in a single month has overtaken that of strategic M&A. The 36 private equity investments in India during June totaled $1.83 billion (€1.32 billion), whereas the 24 strategic M&A deals were worth $1.56 billion.
2 min read · 01 February 2013
Earlier this week, an eclectic mix of investors declared their intention to construct more than one million square feet of commercial space in Moscow. The investor consortium in the deal is particularly interesting in that it includes: a Russian financial services heavyweight, two US hedge funds, one private equity firm and a German bank.
3 min read · 01 February 2013
The big subject on everyone’s mind this week was the mammoth $8-billion (€6 billion) real estate vehicle announced by Morgan Stanley, which is currently the largest private equity real estate fund ever raised. Morgan Stanley Real Estate Fund VI International, which will target assets in Western Europe, Japan, Australia and emerging markets, is far larger than the previous record holder, Blackstone Real Estate Partners V, which closed on $5.3 billion in 2006.
2 min read · 01 February 2013
Earlier this week, Goldman Sachs and Bear Stearns each announced their second quarter earnings. And the news was not good. Bear Stearns posted a loss of 33 percent, while Goldman Sachs only racked up a 1 percent increase in profits.
2 min read · 01 February 2013
The delegates who descended on London earlier this week for PERE’s third annual European Private Equity Real Estate Forum had reason to feel good about themselves. Over the past few years, private equity real estate has been on a winning streak perhaps unrivaled in its history. Well, it didn’t take long for their optimism to be put to the test.
3 min read · 01 February 2013
