Industrial deals outpace retail for the first time
More private equity deals were done in the industrial sector than in retail for the first time in 2018, according to Preqin.
Some 908 industrial deals were carried out worldwide last year, compared to 839 in retail. However, the value of those retail deals – $42.4bn – was $13.5bn above the value of industrial transactions.
Private equity real estate deals hit a record $325bn in 2018, slightly above 2017’s $324bn, making it the seventh consecutive year of record-breaking activity. Preqin said it expects those figures to rise by 5% as more information becomes available.
More private equity deals were done in the industrial sector than in retail for the first time in 2018, according to Preqin.
Some 908 industrial deals were carried out worldwide last year, compared to 839 in retail. However, the value of those retail deals – $42.4bn – was $13.5bn above the value of industrial transactions.
Private equity real estate deals hit a record $325bn in 2018, slightly above 2017’s $324bn, making it the seventh consecutive year of record-breaking activity. Preqin said it expects those figures to rise by 5% as more information becomes available.
Exit activity remained on par with 2017 levels, with 3,912 exits totalling $230bn.
Tom Carr, head of real estate at Preqin, said: “Deal activity outpacing exit activity would seem to be an indication that fund managers are looking to invest in new property more than they are looking to sell.
“However, in recent years, the gap between deal and exit levels has closed, an indication that fund managers have been able to take advantage of a favourable exit environment to disburse their investments.
“Real estate may once have been seen as a buy-and-hold strategy – this is no longer the case.”
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