Private equity bigwig Ralph Rosenberg thinks prices for London’s core commercial and residential properties could fall by 5 to 10 percent following the Brexit vote.
The real estate head at investment firm KKR also told Bloomberg that there could be opportunities found in Manhattan’s luxury condo and hotel markets, which he said are suffering from imbalance. The hotel market in particular has suffered from excess supply and reduced international demand because of a strong U.S. dollar.
Rosenberg also said he thinks the U.S. commercial real estate market as a whole is in “equilibrium” and that demand from Chinese investors continues to be strong even though a recent increase in regulatory pressure could kill the “outlier bid” for trophy buildings.
KKR claims to have invested more than $4 billion in real estate around the globe. The company is an active real estate lender in New York City and in 2015 bought 10 floors at Related Companies and Oxford Properties Group’s 30 Hudson Yards. [Bloomberg] — Konrad Putzier