Mega-deals Reinforce Foreign Appetite for U.S. Real Estate
Overall volume has slowed and some entities have switched gears from buying properties to acquiring real estate platforms and operating companies.
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Overall volume has slowed and some entities have switched gears from buying properties to acquiring real estate platforms and operating companies.
The boom in private equity real estate fundraising that has delivered a slew of billion-dollar mega-funds in recent years has slammed into some formidable headwinds. Yet near-term challenges aren’t diminishing the appetite for capital among a still crowded field of fund managers and sponsors.
Rising interest rates haven’t derailed a steady pipeline of merger and acquisition activity in commercial real estate—at least not yet. The sector has seen a number of mega-mergers announced this year but not well above the historical average.