Finding real value in a course correction
The real estate industry is treading into a new cycle post its learning over the past four to five years.
Finding real value in a course correction - Adapt, Sustain and Grow
The real estate industry is treading into a new cycle post its learning over the past four to five years. After their exposure to both a pre-GFC and post-GFC scenario, industry stakeholders have made changes to adapt to the evolving trends.
Our latest release, Finding Real Value in a Course Correction, highlights how private equity players have made a sustained change to their investment strategy & developers have modified their development mechanics to ensure value creation for their investors and partners during times of uncertainty. The paper also looks at the changing role that banks and the government could play leading to better asset creation and removal of information asymmetries in the system.
- Private Equity (PE) funds are re-aligning the five Ps of real estate investments aimed at optimal value creation in accordance with the changing market conditions
- The capital flows into the residential sector have recorded an upsurge, with the share increasing from 15.0% in 2008 to over 50% in 2009 and 2010
- With an eye on structured transactions aimed at risk mitigation, PE firms are increasingly focusing on investments in fundamentally strong markets
- There is need for a proactive role of banks to ensure that only credit-worthy participants and quality projects have access to finance.