Sovereign Wealth FundsReal estate partners in growth? |
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Despite turbulence in U.S. and global financial markets, U.S. commercial real estate may have both near- and long-term appeal to sovereign wealth funds (SWFs). SWFs have made a big splash in the past year with a broad array of investments in the financial services sector, along with several notable real estate investments.
“Sovereign Wealth Funds: Real Estate Partners in Growth?” delves into the effects of the current environment — economic uncertainty, volatile oil prices, fluctuating U.S. dollar and curtailed private equity activity — that make real estate an attractive investment for SWF managers, who may view it as a hedge against currency depreciation with potential for long-term capital appreciation.
Deloitte’s findings include:
- SWFs are shifting strategy to pursue more active real estate investment opportunities by forming joint ventures, assuming controlling and non-controlling stakes, and committing development capital and hybrid debt financing
- Some large SWFs allocate between 5 and 10 percent of their assets to real estate investment
- The U.S. sits in the “middle of the pack” in imposing regulatory restrictions on SWFs
The “Santiago Principles,” which were established to promote operational independence in investment decisions, transparency and accountability, may result in the elimination of any remaining barriers to increased SWF investment in U.S. real estate.
Download the report attached below to learn more.
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
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Sovereign Wealth Funds: Real Estate Partners in Growth?
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