Expect a wave of opportunistic property deals as the coronavirus crisis continues.
Economists are predicting a return to the dark days of 2008, as private equity giants take advantage of low share prices and hammered valuations in the UK property sector.
“There’s going to be opportunities like never before,” says Savvas Savouri, chief economist of Toscafund Asset Management, a London hedge fund.
Wise property investors who have survived multiple downturns will “see through” the current uncertainty and focus on the fundamentals, Mr Savouri said.
Toscafund thinks there is a window of opportunity for property investors while the uncertainty lasts over the next two quarters, before “normal service” is resumed.
“Too cheap” listed property companies and London assets will be the prime targets for cash-rich private equity firms and overseas investors who don’t need debt to make big acquisitions.
However, the world’s three biggest asset managers have seen their assets shrink by $2.5trn as coronavirus spurs a global sell-off.
BlackRock, Vanguard and State Street Global advisors have all seen their assets under management fall sharply as a result of the recent market chaos.
BlackRock’s assets hit a record $7.4trn earlier this year, but that has now fallen to $6trn as global equities crashed.
