Investment Capital Seeks Global Opportunity in 2013, by Ernst & Young

File Type: Free Content, Article
Release Date: February 2013
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Large amounts of institutional capital are pouring into gateway cities, like London, New York, San Francisco, Paris and Shanghai.  Interest from sovereign wealth funds in setting up either joint ventures or separate accounts with global fund managers is a developing trend expected to increase in 2013, says Ernst & Young.

Other trends noted include:

  • The commercial real estate industry could see a noticeable increase in activity from large Chinese investors in particular, who are turning to the major global real estate markets as a way of diversifying their exposure.
  • Positive signs for a continuing recovery have reached the Commercial Mortgage-Backed Securities (CMBS) market.  A number of major banks are hitting the U.S. market with new issuances, though lenders and investors will continue to develop innovative work-out strategies through 2013.
  • The continued demand for income-producing assets means that more businesses with substantial real estate holdings will explore the option of forming REITs in 2013 as a way of creating value for their shareholders.