Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

US Property deals value fell by 68% in Q2 2020 from the previous quarter

Monday, July 13, 2020

Laxman Pai, Opalesque Asia:

The aggregate value of private equity real estate (PERE) deals in the US fell by 68% in Q2 2020 from the previous quarter - with every sector recording a decline, said Preqin.

Preqin data shows the magnitude of COVID-19's impact on the US PERE deals market so far. In each of 2018 and 2019, single-asset PERE deals in the country amounted to at least $200bn.

According to the report, at the midpoint of 2020, by comparison, this total stands at only $49bn. Activity in the first quarter of the year was relatively strong - the $37bn in single-asset deals fell just shy of the $44bn recorded in Q1 2019, likely explained by the completion of several longer-term transactions. But in Q2, as strict social distancing measures came into place, the activity took a nosedive, amounting to only $12bn.

"Every sector of real estate investment across the US has been impacted by the COVID-19 pandemic. Domestic and international travel restrictions have created cash flow issues for the hotel sector, and brick-and-mortar retail activity has declined as Americans isolate at home," said the report.

With consumers turning to e-commerce more than ever before, the logistics sector has been put under strain. Meanwhile, the shift to working from home for many businesses has created questions around how office spaces may change in the 'new normal.'

Not only has this rapid change created uncertainty in the market, but the social distancing measures and......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1