Zoe Hughes
Despite the turbulence of the credit markets and its impact on Europe’s property markets, LPs will increase their allocations to real estate in the future, according to a report by CBRE. In the long-run, all investors will target an extra €250bn to the asset class.
The bailout of the German commercial property lender, Hypo Real Estate - which is partially owned by private equity firms JC Flowers and Grove International - could prompt investors to wait for further distress to enter the market, according to ING Real Estate's European chief investment officer Will Rowson at ExpoReal.
Real estate prices are set to decline by up to 25 percent in developed markets, according to Townsend co-founder Kevin Lynch. However he said there were plenty of opportunities amid the distress, telling PERE at the ExpoReal conference in Munich that investors were increasing their allocations to the asset class.
The private equity real estate firm has bought a second package of commercial real estate loans from Deutsche Bank covering the multifamily, retail and office sectors in Germany.
Private equity real estate GPs are ‘reluctantly’ beginning to change the terms of their funds as the capital fundraising market swings increasingly in favor of LPs, according to institutional investors at the PREA conference.
As private equity real estate fund managers and institutional investors meet in Chicago for the fall Pension Real Estate Association conference, many say waiting is the best strategy.
Steven Lin, the executive vice president of Capmark Financial and head of its Asia operations, has resigned effective immediately, according to a regulatory filing. Lin was formerly with Goldman Sachs' Real Estate Principal Investment Area.
The Tokyo-based real estate investment firm is reportedly raising a $1bn fund to take advantage of failing residential property companies. Secured Capital CIO John Paul Toppino says current conditions are similar to the financial crisis of the late 1990s.
Following the defeat of the White House’s $700bn financial rescue package, economist and LECG director, Alan Madian, has argued the proposed legislation should only buy mortgage securities backed by real assets and provide for direct infusions of capital.
The escalating credit crisis has claimed another company after Ciena Capital, the real estate lender backed by private equity fund manager Allied Capital, filed for bankruptcy protection warning the value of its assets had ‘significantly’ deteriorated.