Sovereign wealth funds looking for real estate


Sovereign wealth funds are on the hunt for real estate


Sovereign wealth funds and central banks are looking to capitalize on real estate investment opportunities in the wake of the pandemic after a brief pullback last year.

According to IPE Real Assets, nearly three quarters of respondents to Invesco’s survey believe the pandemic-induced drop in valuations will lead to property purchases.

The survey involved 141 sovereign wealth funds and 82 central banks with combined assets of $ 19 trillion.

The average distribution of real estate among respondents fell to 8.3 percent this year from 9 percent in 2020 and 8.7 percent in 2019. But about half of the wealth funds plan to increase activity in real estate from the level of 2020, and about a quarter plan to maintain the level of last year. activities.

The respondents rated industrial and residential real estate as more attractive than office and retail outlets that bear the brunt of the economic impact of the pandemic.

Respondents indicated that data centers are the most desirable sector based on expected returns over the next five years. The growth of the online economy increase in demand to store the data and complex infrastructure needed to support the modern internet ecosystem.

Leasing slowed down last year, but acceleration expected potentially record levels. The rent also went up in secondary markets in the second half of 2020. [IPE] – Dennis Lynch

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