Active Capital 2019


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Active Capital 2019

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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

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NOwnership

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