the great wall of money 2016

THE GREAT WALL OF MONEY2016

A Cushman & Wakefield Capital Markets Research Publication

Available capital has now reached a new record US$443 bn, representing the highest level since records began in 2009

EXECUTIVE SUMMARYRECORD HIGH OF GLOBAL CAPITAL TARGETING COMMERCIAL REAL ESTATE

Actual raised capital has begun to fall globally, driven by EMEA. New raisings, however, are on an increase – albeit from a low levelThe Americas – led by the US – attracts the most capital, while China, the UK, Japan and Germany round up the top 5The weight of cross border flows will continue to transform real estate markets across the globe

AVAILABLE CAPITAL BY REGION (US$ BN)

AVAILABLE CAPITAL BY COUNTRY(US$ BN)

• In EMEA, raised capital fell 4% over the year to US$131 bn, indicating that raised funds are increasingly focused on deploying capital

• Asia Pacific saw a modest rise in raised capital of 3%, and the Americas was up less than 1%, albeit some of this growth reflects the closing of funds during 2015.

• Raising capital is on the up, reflecting a recent flurry of announcements from well-established multi-billion funds

NEW RAISINGS ON AN INCREASE AGAIN

RAISED VERSUS RAISING CAPITAL (US$ BN)

The weight of cross border flows continues to transform real estate markets across the globe. Most notably, more than 40% of capital targeting both Asia Pacific and EMEA is from outside their respective regions, with North American-sourced capital dominating.Nigel Almond, Capital Markets ResearchCushman & Wakefield

INVESTORS STILL DIVERSIFYING ACROSS ASSET TYPESWHERE INVESTORS ARE PUTTING THEIR CAPITAL

TARGET GEOGRAPHY (BASED ON FUNDS RAISED)

TARGET PROPERTY TYPE

A REGIONAL PERSPECTIVEINVESTMENT STYLE BY REGION

THE AMERICASValue Add: 41%Opportunistic: 31%

Core: 12%Mixed: 9%

Unknown: 6%

Opportunistic: 47%Core: 28%

Value add: 16%Unknown: 5%

Mixed 4%

EMEA

ASIA PACIFICOpportunistic: 49%

Value add: 23%Core: 14%Mixed: 10%Unknown: 4%

As global equity markets face increased uncertainty, factors such as quantitative easing and lower-for-longer interest rates will sustain the relative attractiveness of commercial real estate, helping to bolster the continued flow of capital into real estate and related funds. Carlo Barel di Sant’AlbanoCEO, Global Capital Markets, Cushman & Wakefield

CUSHMAN & WAKEFIELD LLP43/45 Portman SquareLondon, W1A 3BGTel.+44 20 7935 5000

Cushman & Wakefield Copyright 2016. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION.

NIGEL ALMONDHead of Capital Markets Research, EMEA+44 (0) 20 3296 2328 nigel.almond@cushwake.com