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Laxman Pai, Opalesque Asia: The investment outlook for real assets in Australia is positive, as growing investor appetite has spurred fundraising and dealmaking activity, says Preqin.
In the private equity real estate (PERE) sector, 234 transactions were completed in the 12 months to the end of June 2019, and total deal values in the first half of 2019 alone represented 80% of values seen in the whole of 2018.
Australia-focused real assets fundraising reached $3.2bn in 2017, the highest amount recorded since 2004. The real estate comprised three-quarters of that total, while natural resources accounted for around a fifth and infrastructure about 3%, said the report.
In the infrastructure sector, the majority of interest has been in renewable energy assets, which accounted for two-thirds of deals announced over the last 12 months.
The investor base supporting these sectors is increasingly global: two-thirds of active investors are based beyond Australia, with increasing interest from Europe- and North America-based investors in particular.
"The Australian real assets industry is growing, and investors overseas are turning towards the region. The tax incentives for foreign investors, the depreciating Australian dollar and the privatization wave in the infrastructure industry have awakened investors' appetite, and this can be seen in the increased fundraising for the region," said Patrick Adefuye, Head of Real Assets - Preqin.
"There is an upward ...................... To view our full article Click here
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