More dry powder for Americas as European banks pull back

Total money raised for global real estate investment fell for the first time since 2011, but portion set aside for Americas climbed

TRD MIAMI /
Mar.March 15, 2017 08:45 AM

Investment in the Americas

From the New York website: The amount of equity set aside for real estate in the Americas exceeded Europe, the Middle East and Africa for the first time as wary European banks tighten their purse strings.

For the first time since 2011, the amount of money available for real estate investment across the globe declined, falling 2 percent on the year to $435 billion, according to a Cushman & Wakefield report cited by Bloomberg.

Led by a strong dollar, equity available for real estate in the Americas climbed 8.2 percent as investors sought to protect themselves from inflation.

“As the real estate cycle enters a stage of maturity in many key markets, investor focus has shifted from raising new funds to identifying and deploying capital already allocated to the sector,” read Cushman’s report. “Banks and alternative lenders saw a large rise in new debt origination from 2014 to 2016, but this trend appears to have moderated in 2016, alongside a slowdown in investment transaction volumes.”

Alternative lenders – also known as shadow banks – such as the Blackstone Group and Starwood Property Trust are increasingly stepping in to fill the void as regulated banks pull back. At the end of 2016, real estate funds’ dry powder stood at a record $237 billion, up from $136 billion in 2012. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Daily Digest Miami

South Florida home sales struggle in October, Cipriani and Terra plan luxury condo

Rendering of Sailboat Bend II

Affordable housing project in downtown Fort Lauderdale lands $27M loan

Rendering of the Brickell hotel development, Tony Cho and Robert Finvarb

Finvarb and Cho land construction loan for mixed-use hotel near Brickell City Centre

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Neiman Marcus CEO Geoffroy Van Raemdonck (Credit: Getty Images)

Struggling Neiman Marcus scores loan from Credit Suisse for Coral Gables store

Developers land $74.5M loan for condo construction project at Ocean Reef Club

Developers land $74.5M loan for condo construction project at Ocean Reef Club

Ceiba Groupe's Managing Principal Adam Bedzow and a rendering of Suede Downtown Davie

Ceiba Groupe nabs $46M loan for Downtown Davie project

JW Marriott Miami Turnberry Resort & Spa with Jeffrey Soffer, and a rendering of the Shore Club with Ziel Feldman

Jeffrey Soffer’s Turnberry Isle, HFZ’s Shore Club hotel close refinancings

arrow_forward_ios