Active Capital 2019


Active Capital 2019


Capital Gravity

Knight Frank predict a rotation in private equity funds from office assets into industrials and an increased weighting of specialist services by 2023

  • By 2023, industrial property will replace retail as a major destination of capital flows, with industrial property holding 20%, specialist services 50% with retail property dropping to just 8%

  • United States, Canada, France, Germany, Singapore, Mainland China, Hong Kong are the top sources of cross border capital in Q1 2019

  • The US and Canada invested approx $133 billion internationally with $129 billion of cross-border investment from Hong Kong, Mainland China and Singapore

  • Singapore has already invested more than $4 billion into Mainland China, South Korea, the UK and Australia

  • Mainland China and Hong Kong absorbed $5 billion of international PE cross-border capital

  • Japan invested $1.3 billion into office and retail

  • Norway and Finland saw $1.7 billion of PE capital, up from $706 million over the full year in 2018

  • For Q2, Luxembourg, Switzerland, Norway, Qatar, United Arab Emirates, Taiwan, Japan are expected to contribute heavily to cross border flows



Flexibility of living, alongside affordability issues, are leading to an increase in renting among all age-groups leading to residential investments taking their place among more established real estate asset classes

  • Societal, demographic and tenure changes mean that more people are choosing to live in rented accommodation operated by large-scale operators

  • From student to multifamily, single family to senior living, more people are beginning to rethink the idea of owning their property in favour of something more flexible and affordable

  • Student numbers are rising around the world, in China, enrolments have risen

  • by 35% since 2014, and there are currently around 20 million students in the EU. An increasing number of undergraduates and post-graduates are living in purpose-built student accommodation that provides the space and services to suit their need

  • Rapidly aging populations (the number of people aged 60 or over expected to triple to more than three billion by 2100) mean there’s a rising demand for senior living accommodation, the idea of ‘retiring to the country’ is becoming outdated for some, with more older people looking to live in or around city centres