Friday Letter

Inventory inspections and alternative due diligence methods are the early order of the day for managers and investors alike in the face of widescale working from home requirements.

The moves by Allianz and AXA to combine real estate or alternatives entities are further steps to attract more money to non-traditional asset classes.

One of private markets’ biggest investors, Singaporean state fund Temasek and real estate manager CapitaLand, are implementing pay cuts to counter the economic impact of the rapidly spreading outbreak.

The spreading virus is already thumping the country’s retail and hotel sectors, but its wider impact in the country and further afield cannot be fully assessed yet.

The region’s private real estate markets are performing well. But with few choices for institutional capital, an oligopoly of three is on the cards.

PERE’s ten most-read stories this year show a sector replete with equity at a critical time of change as it transitioned from an asset class to a service.

Defined contribution pension assets have finally overtaken defined benefit plan assets in terms of size. But change is still needed before this money becomes more relevant to private real estate.

Germany’s desirability as an investment destination and the source of record-low property yields in a continually QE-fueled eurozone are among the questions we have after attending the Munich event this week.

As the co-working giant delays its IPO to regroup, institutional landlords should do likewise by in their re-underwriting and planning for a worst-case scenario.