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REAL ESTATE 2014

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Real estate

New era of financing emerges from the ashes Liquidity is up and leverage is down. Alternative lenders are stepping in where banks can no longer tread. While the period of re-regulation may not yet be over, real estate finance is starting to look in rude health once again By: David Wigan

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he recovery of the global real estate market from the devastating toll inflicted by the financial crisis is continuing to gather pace, with investment almost back to 2008 levels and growing confidence fuelling increased risk appetite. However, real estate 2.0 looks different in many ways. Asia Pacific has surged ahead of North America and Europe to consolidate its position as the largest market, accounting for almost 50% of the $1.18 trillion invested globally in 2013, according to commercial real estate firm Cushman & Wakefield. Asia is responsible for around 30% of cross-border capital flows, fuelled by long-term investment from sovereign and institutional funds looking for steady returns. Global financial regulation has been informed by the explicit aim of preventing a repeat of the over-extension of credit and mispricing of risk that allowed the real estate bubble to inflate. Regulators in fast growing hotspots in Asia and Europe have taken steps to cool the market which, combined with growing anticipation of interest rates beginning to rise, is helping to rein in expectations for price growth. “Rising demand for UK housing appears to have been capped by the measures regarding the Mortgage Market Review (introduced in April to curb lending) together with the prospect of the Bank England taking action to cool the market, which it has done,” says Stephen Lewis, chief economist at ADM Investor Services. “It’s looking more sustainable and the latest RICS survey shows price increases are easing off and fewer buyers are coming

The implications of the new landscape for the financing market have been far reaching, with a rise to prominence of alternative lenders, including hedge funds, asset managers, insurers, pension and sovereign funds. Regulation, tightening of credit standards and the rise of the overseas buyer means cash is king. In the US, for example, cash accounted for around one-third of residential real estate transactions in April, up from 14% in 2008, according to the National Association of Realtors. Regulation continues to be of primary concern among market participants. “I don’t think the period of re-regulation is over,’’ says Matt Webster, HSBC’s global head of real estate finance. “As long as you have that uncertainty it will continue to introduce some sort of questions and concerns in terms of the amount of liquidity you have in the market.” HSBC rose to second from third global bank in Euromoney’s Real Estate Survey 2014. Goldman Sachs was first, joining winners including CBRE as top global advisor and Colliers International, voted top agency. “It’s important that when cooperating and sharing concepts on a global basis that regulators take into account the different stages in the cycle different markets are at and how they are inter-related,” says HSBC’s Webster. “It’s the proverbial stepping on a balloon. If you stamp out capital creation in one market you’re simply going to create it somewhere else.” But in other areas not much has changed. Competition for prime assets in core markets is rising, forcing investors to look to secondary markets in search of keener pricing and

forward.”

to diversify into unconventional assets. At the

Reprinted from Euromoney magazine September 2014

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same time gaps in the supply of finance for longer term and riskier propositions created by the post-crisis flight-to-safety are narrowing. Both equity and debt financing are becoming more widely available and while loan ratios remain conservative, competition and the search for yield is tempting lenders further up the risk curve. In addition, the ability of leverage to produce a higher return, particularly in a tame interest rate environment, continues to underpin real estate financing, ensuring a modest revival of the fortunes – to varying degrees – of securitization, bank and mezzanine lending, commercial property funds and Real Estate Investment Trusts (Reits). “We’re back to the levels of global investment we had in 2008, but the big difference is that the average leverage back then was close to 65%, meaning you had a lot of leverage buyers way ahead of 65% all the way to 85% and 90%; but today that average is close to 30%,” says Wenceslao Bunge, global co-head of Credit Suisse’s real estate group. The fact there is so much more equity going into the sector means lower volatility, he says, which makes Credit Suisse far more comfortable going back into the lending market.

US PROPERTY-OWNING REITS HAVE been among the biggest beneficiaries of the improving economy amid still low interest rates, offering investors an attractive yield over treasuries or fixed income. Listed Reits rebounded from under-performing the overall equity market in 2013, to a strong outperformance this year. National Association of Real Estate Investment Trust figures show listed Reits surged 16.25% in the first half of this year with a yield of 3.5%. That compares to the S&P 500’s total return of 7.1% and a dividend yield of 2%. The industry closed deals worth more than $4.3 billion in 2013 ranging from health care real estate and retirement communities to upscale shopping malls, lodging and industrial. Reits’ restricted ability to accumulate cash reserves to meet this level of activity meant increased used of mortgage financing to fund deals or refinance, providing a much needed lift to a domestic CMBS market barely a quarter its 2007 size. Data from Dealogic shows 2013 CMBS volumes in the US dou-

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Real estate

Direct lenders target funding vacuum left by universal banks Direct lending for commercial property deals is a niche, but expanding, segment of the alternative

I don’t think the period of re-regulation is over. As long as you have that uncertainty it will continue to introduce some sort of questions and concerns in terms of the amount of liquidity you have in the market Matt Webster, HSBC bled to $102.5 billion, from $53 billion in 2012, accounting for 93% of global issuance, although issuance has slowed sharply again this year. European Reits have also outperformed stocks. Irish Reits and Spanish Socimis have raised more than $3.5 billion to invest in real estate in the past 12 months, and there have been four Spanish real estate investment trust IPOs since January. The Merlin Properties Socimi listing in July raised €1.3 billion, western Europe’s largest real estate IPO, despite falling short on expectations. Merlin has invested €1 billion of its war chest, acquiring a portfolio of income streams from Tree Inversiones comprising 880 retail branches and five buildings of BBVA – with 25- and 15-year leases respectively. Tree acquired the properties at the height of Spain’s real estate slump in 2009. Merlin has also acquired an office building in Barcelona and a shopping/hotel complex in A Coruña. The Tree deal has positive liquidity and financing implications for Spanish real estate,

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Reprinted from Euromoney magazine September 2014

plugging the funding void left by a diminished bank lending sector, where deleveraging is far from complete. With real bank credit remaining well below Q4 2009 levels in all developed markets bar France and Japan, according to the BIS, demand for alternative sources of funding is rising – particularly in Europe. The funding gap between European maturing commercial property debt and the amount banks were prebillion last year, according to Direct lenders focus on mid-market, secured debt are too small for traditional debt capital markets but require more leverage than banks are willing to provide,

Most direct lenders use a debt fund structure to provide commercial property tutional investors looking to match long term liabilities, providing attractive returns and higher leverage for borrowers – at a price. “There’s an increasing amount of alternative money that is targeting real growing area,” says Floris Hovingh, director and head of lender coverage at Deloitte. “We’ve seen a number of alternative debt funds being set up, some smaller ones and some larger ones

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like Partners, Pramerica, and Pricoa.” Hovingh says what is new is the ability to do senior or stretch senior real estate debt. “Previously, there was always the ability to do mezzanine real estate debt from alternative lenders,” he says. “But these new funds are able to increase the senior LTV to a level that is potentially higher than you could get with senior or even where you would get to with mezzanine, but do it for blended pricing anywhere from 4% to 7% or 8%.” Direct lenders do not typically target London or

“There’s an increasing amount of alternative money that is targeting real estate, so it’s area” Floris Hovingh, Deloitte other prime property that

for 100 basis points over Libor, but rather secondary and tertiary locations using a unitranche structure

more recently commercial real estate debt. Ares’ real estate unit has been buying European CRE for the past decade, primarily in the UK and Germany, with more than $2.9 billion under management. “The opportunity in Europe is similar to what has played out here in the US, but in many respects it’s more acute,” says Todd Schuster, senior partner and global head of real estate credit investment programmes at Ares. The banks’ share of commercial real estate debt in the US has been falling for gressive, cheap lending that crowded out rival capital sources means banks still hold more than 90% of the

hit there were other established sources of commercial real estate debt in the US besides banks, but that still really isn’t the case in Europe,” says Schuster. “On top of today’s deleveraging, the 80%-90% LTV loans banks made prior to ded losses. So there’s a lenders like us to come in

over Libor. That compares to typical mezzanine pricing of around 10%. The $79 billion alternative asset manager Ares Management exported its US Business Development Company model to Europe in 2007, focusing on corpo-

with more realistic LTVs.” Ares, which is engaged in capital raising for European real estate debt through separately managed accounts and employs capital from its US-based Real Estate Investment Trust, says it may launch a comingled CRE debt fund in the com-

illiquid middle-market, and

ing year.

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with the owners – Ares Management, Europa Capital, Deutsche Bank and Banca March – saying the exit frees them to look for new investment opportunities. Credit Suisse, which was the sole global coordinator of the Merlin flotation, says the deal demonstrates the market’s appetite for new managers with a proven track-record in those markets that investors feel have bottomed out and where the recovery is on its way. “There’s a lot of liquidity in the US and there’s a feeling among investors there that there’s more growth in the coming years in Europe than in the US,” says Credit Suisse’s Bunge. “The US has already recovered and people believe there’s very little upside there so we’ve seen a lot of the very active fund managers look at opportunities in Europe. They started in the UK which recovered very, very fast, they moved to Ireland, which recovered extremely fast and the next frontier was Spain, and to a lesser degree, Portugal,” he says. “It’s partly that the market has fallen sharply since the crisis but we’ve also seen a significant recovery over the past 12 months that we didn’t think possible.” Bunge says that strength is reflected in cap rates. Assets such as prime shopping centres that traded north of 7% a year ago today trade below 6%. “It shows how fast the market is recovering, how much liquidity is there for assets that come to the market,” he says. “People are not only focusing on cap rates but rents, capital values and occupancy which haven’t recovered. They’re still way lower than in 2004 and 2005 and that’s the upside that countries like Spain and Ireland promise.” Ireland’s Green Reit has raised equity of €685 million since it launched last summer to finance a number of acquisitions, including Dublin’s flagship Central Park project [with Pimco and Kennedy Wilson], where tenants include First Active, Merrill Lynch and Vodafone and a portfolio of office and retail assets from Cosgrove Property for €375 million. Green subsequently announced a funding mandate that could see it finance up to 65% of the portfolio’s value in senior debt. In the US, the falling yield on 10-year treasuries is impacting the returns from MBS by shortening the life of the bonds, as growing numbers of borrowers prepay their

Reprinted from Euromoney magazine September 2014

loans, refinancing to take advantage of lower mortgage rates. Prepayment risk is causing large holders of mortgages and MBS – money managers, insurers, commercial banks and hedge funds – to increase their holdings of treasuries to hedge against higher rate loans in the pool being paid off early and having to reinvest the proceeds at lower market rates. Those treasury purchases are among a number of factors, including hefty dividends paid to the government by Fannie Mae and Freddie Mac, conspiring to suppress benchmark 10-year rates.

MORTGAGE CREDIT EXTENSION accounts for around a quarter of all lending in the US and includes loans by banks and non-banks – money market/mutual funds, insurers, pension funds – and increasingly securitization of home mortgage loans with MBS. However, the fallout from the sub-prime mortgage crisis, which has seen private label issuers heavily penalised for selling toxic MBS and left investors once-bitten-twice shy, has allowed Fannie Mae, Freddie Mac and Ginnie Mae to dominate. Sifma data show the three agencies issued $1.64 trillion MBS last year, equivalent to 94% of all mortgages originated in 2013, compared with less than $14 billion of mostly jumbo loan MBS from private issuers. Jumbo MBS comprising loans that exceed the agencies’ $417,000 limit but are of high quality, accounted for just 5% of 2013 jumbo mortgage origination. This year has seen downside pressure on the residential MBS pipeline as mortgage originations for family homes halved, totalling just $493 billion compared with over $1 trillion in the first half of 2013.

Analysts say 2013 was a spike produced by the release of pent up demand for mortgages and refinancing. With MBS issuance in the first half of 2014 down by more than a quarter on the same period last year, according to Dealogic data, investor dollars are chasing fewer buying opportunities. ADM’s Lewis says the sharp drop in mortgage originations in Q3, which persisted through the first half of this year, is down to elevated spreads. “The rise in mortgage rates last year has been progressively passed onto borrowers. Interest rates have since fallen but mortgage rates have not followed and this reflects stronger demand for mortgage credit,” he says. “I think borrowers may be starting to feel mortgages are becoming too expensive and worry about their ability to repay.” That is feeding through to MBS through fewer loans being available to securitize. The market tightening is reflected in the levelling off of returns on agency MBS, which Bloomberg’s MBS Bond Index shows decreased to just over 1% in the last quarter, still beating the 0.8% returned by investmentgrade US corporate bonds. Even so, MBS’ yield-to-maturity is unchanged at 2.57% compared to 2.74% for corporate bonds and 2.03% for treasuries. MBS issuance in Europe, which peaked at around $800 billion in 2008, continues to flounder, with recovering volume collapsing following the introduction of risk retention rules in 2011. But CMBS has increased its share. Total 2013 volume was $31.8 billion with an RMBS-CMBS split of 80:20, Dealogic data shows. This year to August, the total is $14.2 billion with the share of CMBS falling back to 14%. The ECB and Bank and England have said

LTM performance 125 FTSE Epra/Nareit Europe

120 115 110 105

EuroStoxx

100 95 90

Aug ʼ13

Oct ʼ13

Jan ʼ14

Mar ʼ14

Jun ʼ14

Aug ʼ14

Source: Credit Suisse

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Real estate

Pfandbriefe looks for new lease of life from savings banks The increasing role of Sparkassen – Germany’s ubiquitous savings banks – in real estate lending could boost Pfandbrief issuance, which has been steadily declining despite mortgage volumes surging to a 16-year high, analysts say. In the last couple of years, mortgage Pfandbriefe issuance has been gaining a larger share of the Pfandbrief pie, which has shrunk from

Hamburg and Munich prices are up by around a third over the same period, according to real estate consultancy Bulwiengesa.

ciation of German Pfandbrief Banks data show. However, rule changes

term funding and that’s something

regulator BaFin, requiring matching liabilities in line with global regulatory capital reform, could prompt country’s 400-plus deposit taking banks to begin issuing mortgage Pfandbriefe. “BaFin wants to make sure an offer comes from ratings agencies by ensuring there’s more matching of assets and liabilities, because they’re concerned about banks lending long but funding themselves shortdated,’’ says Cristina Costa, senior covered bonds analyst at Société Générale. “Pfandbrief issuance is a good solution. By shifting assets into the cover pools the banks will be able to issue more, but the funding will be done by mortgage Pfandbriefe.’’ Real estate prices have been rising in Germany for tionwide. In cities like Berlin,

this year, according to data from Interhyp, but Pfandbrief

long-term lending you also need to

Pfandbrief. So there is a decent incentive for savings banks in particular to do that’’ Florian Hillenbrand, UniCredit issuance has barely risen. Savings Banks already hold around half of the 70 licences BaFin has granted to institutions to issue mortgage Pfandbriefe, German real estate bank DG Hyp reports. But according to Florian Hillenbrand, senior covered bonds analyst at UniCredit in Frankfurt, few savings banks are active in the Pfandbrief market, despite the increasing volume of mortgages provided by the sector. “Some of the larger savings banks are currently in the market but I think we will see the savings bank sector increasing its Pfandbrief activity more and more Funding Ratio requirement

of the CRR in Basel III,” he says. “Currently, German savings banks are strong in lending but their largest funding base effectively is deposits, which is good, but deposits are not long-term funding. If you want to do long-term lending you also need to show some long-term funding and that’s something you can do with a Pfandbrief. So there is a decent incentive for savings banks in particular to do that.’’ bank would need to issue separately. Banks too small to issue on their own account can use the German one bank registers assets held on its balance sheet, which are then held in a bankruptcy-remote estate that can be used to ‘transfer’ the assets to another bank. Pledged assets that are on the balance sheet of one bank have explicit legal backing to be used as collateral for a Pfandbrief issued by a second bank. Hillenbrand says Germany could employ a pooled Pfandbrief funding model using large wholesale regional banks, for example, Bayern LB, as hubs, taking on assets from savings banks and issuing Pfandbriefe. “The question is not how many savings banks are going to be active, but rather how much of the aggregate mortgage lending in the savings bank sector is one day going Pfandbrief cover pool,” he says.

any revival of the securitization market depends on transactions being priced in a way that meets the demands of both investors and issuers. Obstacles include temporary factors like the interest rate environment and lingering stigma from the crisis, but also structural impediments such as regulatory treatment of securitization and a lack of asset performance data. But HSBC’s Webster believes the market will gather momentum, and soon. “Regulation of US securitization is further down the road than in Europe and the pricing on CMBS deals in particular has been a great alternative to bank financing, but banks may recover market share as their financing and funding costs continue to drop,” he says. “The CMBS investor base is not there in Europe in the same way and it’s going to take time to develop. The regulatory framework needs developing and there are outstanding questions regarding the price and availability of liquidity to the banking system, and ECB/ EBA rules on capital treatment.” He says a number of lenders are working on bringing deals to market so he expects to see more issuance volume coming out of Europe in the second half. At the same time, deleveraging in Europe is continuing as banks, non-banks and asset management agencies continue to unwind real estate assets from their balance sheets. A record €40.9 billion of commercial real estate loan and real-estate owned sales were transacted in the first half, up more than 600% on 2013, with state ‘bad banks’ accounting for almost two-thirds of disposals, according to Cushman & Wakefield. Three-quarters of these assets were purchased by US private equity, led by Lone Star, Cerberus, and CarVal, with average transaction size almost doubling from 2013 to €621 million. Cushman & Wakefield estimates the gross exposure of European banks and the EU’s nine bad banks to non-core real estate that needs to be sold or worked out in the next few years to meet Basel capital requirements at €584 billion. That figure is expected to increase following the ECB/EBA asset quality review and stress tests next month, suggesting opportunities for non-banks and the continuing reshaping of the real estate financing landscape for years to come.

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Real estate

China takes back seat in Asian real estate

The weakness of the Chinese market has prompted the Asian real estate industry to look elsewhere for returns in 2014 By: Rob Hartley

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ost of the time, when discussing Asian business, China hogs the limelight. So it is a novelty in the real estate industry that a sluggish Chinese market is allowing some of its regional counterparts to take centre stage. “China is weak domestically,” says Piers Brunner, CEO, Asia, at real estate services company Colliers International. “Debt financing is still difficult, especially in China.” Brunner says the most obvious trend in real estate finance is for offshore investment. “This continues, and the next wave is smaller cap developers and investors looking offshore,” he says. “The bulk of the money is from mainland China… however Singaporean, Taiwanese, Korean and Hong Kong money is flowing too. The hotspots are still the UK – read London – and Australia, plus the USA.” While Hong Kong had a slight increase in volumes in the second quarter, Brunner is uncertain whether it is the start of a sustained bounce back in the market. “The Asian investor market that is most interesting is Japan and we predict continued interest in most sectors; office, residential and Industrial,” says Brunner. Chris Brooke, executive managing director, consulting, Asia Pacific, at real estate services company CBRE, says that in commercial property, there has been a drive for yield so investors have been focused on markets like Australia, but he also highlights Japan. “We have seen an interest in markets such as Japan because of factors such as improved economic conditions and positive sentiment supported by events such as the granting of the Olympics to Tokyo,” says Brooke. “There are also good arbitrage

service debt relatively cheaply.” According to Brooke, CBRE continues to see interest in China, but the challenge is how to deploy capital: investors have had to resort to building their own projects rather than buying. He also expects more positivity in India after its recent elections. “In the second half of the year, we would expect that investors may be slightly more selective and that some yield compression may occur in relation to core assets,” he says. “In China, people are waiting to see what will happen on the broader economic side. Across the region, we expect that buyers will be more patient as they look for correct entry points, and at the same time vendors will be in no rush to sell as a result of relatively low holding costs. This may result in transactions taking longer to complete.” Mark Gabbay, co-CEO Asia Pacific, at LaSalle Investment Management, expects a steady deal flow for Asia over the rest of the year and some large office-building sales over $1 billion in Tokyo. He also says the firm will continue to monitor the potentially distressed situation in China. “We see the continued search for highquality income buildings in gateway cities, such as Tokyo, Seoul and Sydney, due to the ongoing demand for stabilised core assets,” says Gabbay. “In addition, there is extremely positive investor sentiment for the logistics space throughout Asia as a hedge to the impact of the internet on retail and performance of the asset class through the economic cycles.” A source at another large real-estate company highlights the shortage of modern logistics facilities in markets such as China, which is driving demand. “Our business continues to be driven by sustainable, secular trends, not cycli-

demand for distribution space continues to closely track increasing consumption, and the need for supply chain efficiency drives growth in demand for modern, well-located facilities. The supply of modern logistics space is far behind occupier demand in all of our markets.” Euromoney 10th annual real estate survey canvassed the opinions of real estate advisors, developers, investment managers, corporate end-users and banks worldwide. It asked respondents which firms they thought were the best providers of real estate products and services in their market over the 12 months up to May 29. Colliers International finished top of the advisors and consultants category for Asia, just ahead of CBRE in second place and Jones Lang LaSalle in third. Global Logistic Properties topped the Asia developers category and HSBC came first in the Asia banks category. LaSalle Investment Management finished top of the Asia investment managers category, ahead of Blackstone in second. Despite the relative weakness of the Chinese market, there are still plenty of opportunities in Asia’s real estate sector: countries such as Japan and Australia have

opportunities in that market and you can

cal ones,” says the source. “In China… the

stepped in to fill the gap.

Reprinted from Euromoney magazine September 2014

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The bulk of the money is from mainland China… however Singaporean, Taiwanese, Korean and Hong Kong money is flowing too. The hotspots are still the UK and Australia, plus the USA Piers Brunner, Colliers International

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Real estate

Dubai leads the way back to the good times Rapid real estate price rises renew fears of a speculative bubble. The next hotspot could be Saudi Arabia By: Chris Wright

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he good times are back in Gulf real estate – to an almost worrying degree. The days when people were abandoning apartments and heading for Dubai airport as they plunged into unserviceable debt seem a long time ago now, as attention has turned instead to more familiar territory: working out how to calm down a vibrant market. “Our research indicates that the measures introduced by the government at the start of this year have played a key role in curbing a rise in prices,” says John Davis, CEO for MENA at Colliers International, which has been named the MENA region’s best advisor and consultant, and best investment manager, in Euromoney’s real estate survey, as well as winning those categories for both the UAE and Saudi Arabia. “A strong GDP coupled with government spending in infrastructure, tourism and hospitality highlights that the Dubai market is maturing and is now being driven by sound economic and demographic fundamentals, in contrast to the market that we saw in 2008 which was considered to be a speculators’ market,” says Davis. Either way, it’s certainly on an upward trend. Colliers’ research showed a 19% year-on-year growth rate in its Dubai House Price Index in the first quarter of 2014, up 5% quarter-on-quarter. Retail and hospitality are projected to head the same way, boosted by the Expo 2020 initiative. And, while Abu Dhabi is known for a more cautious and stately nature than its free-wheeling neighbour, its real estate patterns look similar. Colliers’ second-quarter numbers showed a 12% year-on-year increase in rentals and 9% in sales prices in residential property. Davis says Abu Dhabi is set to see a shortage of 51,000 residential units during 2014 “as demand

As always, there are some concerns about the nature of UAE property development, even if there is a sense of renewed maturity about it now. Of Abu Dhabi, Jones Lang LaSalle notes: “New supply is needed, particularly of quality residential product. But supply controls are required to ensure the right product is prioritized in locations with existing infrastructure.” Still, it is little surprise, in this environment, to see an Emirati crowned as the best developer: Emaar Properties from Dubai topped our survey. Alongside the developer’s evervoluminous pipeline of new projects, perhaps the clearest indication of Dubai’s revived health is the news that Emaar will launch an IPO of its malls business in Dubai in October, in what is expected to be the biggest share sale in the UAE since the financial crisis. It expects to list 15% of the malls business, a property portfolio that includes Dubai Mall – the world’s largest. Mohamed Alabbar, chairman, calls the planned IPO “a milestone for the development of the UAE capital markets as, for the first time, it combines institutional and retail

“The Dubai market is maturing and is now being driven by sound economic and demographic fundamentals, in contrast to the market that we saw in 2008 which was considered to be a speculators’ market” John Davis, Colliers International

outstrips supply in the UAE capital.”

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shareholders in the same offering”. These days, of course, Emaar is by no means a purely UAE developer; its most recent landmark announcement was for Emaar Square in Jeddah, Saudi Arabia, a mixed-use commercial project that mirrors similar office developments the company has built in Dubai, Istanbul and Cairo. Emaar itself noted, in announcing the development: “The launch draws on Saudi Arabia’s international reputation as a fastgrowing business destination. With the economy set to grow at 4.4% this year, the massive investment in infrastructure development by the government is further boosting the business sector.” There is a feeling that Saudi Arabia, as it opens modestly to international capital, is a hot spot for real estate development now. Indeed, in banking, it’s a Saudi Arabian name that leads the field: Samba, followed by fellow Saudi Al Rajhi. Other Saudi-based institutions follow, illustrating the financing needs in the Kingdom. To take industrial property as an example, several large master plans are due to be delivered between 2014 and 2018, including three new industrial cities in south Riyadh. According to Colliers, Riyadh’s supply of industrial land will grow from 25.3 million square metres to 35.4 million over that time. Two other advisory groups stand out in other markets. Jones Lang LaSalle leads in Egypt, a market upon which it is optimistic. “Improved political and economic stability has resulted in restored confidence in the Cairo real estate market,” says JLL’s latest Cairo research, “which has led to the resumption of a number of projects previously placed on hold.” It cites the approval for Palm Hills Development Company to develop two land plots of 57 acres in east Cairo in an integrated residential project as an example. CBRE leads in Bahrain, a market it covers with its office and residential MarketView reports. Generally speaking, though, the advisors and bankers seeking to service Middle Eastern wealth in real estate may well find themselves pursuing it out of the region. According to Colliers’ most recent report on global cross-border flows, in the first half of 2014, €300 million in investment went from Asia into the Middle East – but dramatically more, €5.9 billion, went from the Middle East in to Europe.

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Consumers drive boom in sub-Saharan Africa Retail space developments, rather than housing, offer the best opportunities in the region By: Kanika Saigal

A

frica is growing at record speed. With six of the 10 fastest-growing economies in the world, sub-Saharan Africa’s average GDP growth will exceed 5% in 2014. A real-estate boom is an inevitable side effect of rapid urbanization and a burgeoning middle class. According to a report published by consultants PwC in March this year, by 2025, over 60% of all construction activity will take place in emerging markets, up from 35% in 2005. Sub-Saharan Africa will account for the second-largest proportion of this, just trailing emerging Asia, driven by an emerging consumer class: the rise of commercial real estate as a popular asset class is already on the up. “The growth of retail space is probably one of the most important trends in subSaharan Africa at the moment,” explains Gerhard Zeelie, head of real estate finance for Africa at Standard Bank, which came out as the best bank overall for Africa in Euromoney’s real estate survey. “Retail space is the fastest-growing asset class in terms of real estate, with Nigeria and Kenya being particularly popular hubs in the west and east respectively. Outside of South Africa, Kenya has one of the most developed real-estate markets in the region,” he says. In Nairobi, the newest addition is Garden City, a retail, residential and commercial project developed by private equity firm Actis. It will house the largest mall in east Africa (50,000m2), an outdoor events area and a theatre. Garden City is a product of Actis’ second dedicated real-estate fund, one of the biggest in the region. The firm is still looking to fund other projects. The first real-estate fund, launched in 2006 has just a couple of assets

track record, Actis sets an example for those working on the continent and comes out on top for developers in the survey. Louis Deppe, director of real estate for Actis, says: “There isn’t a lack of buying power in the retail space in places like Nairobi, but there is a shortage of quality tenants. And what I mean by this are tenants and retailers that are familiar with African consumers.” He adds: “In the past we have seen companies trying to set up shop on the ground without the right expertise, companies that haven’t adapted to an African market. In some instances, for example, retailers have assumed that Africa is a dumping ground for leftover stock. But in reality shoppers want the highest-quality products just like anyone else. If not, they won’t pay up and retailers won’t succeed. Companies need to have a better understanding of who they are catering for.” While shopping malls are popping up in Nairobi, Lagos and Accra to cater to newly affluent consumers, there remains a lack of affordable housing in the region – a problem likely to get worse as population and urbanization rates increase and while structural funding problems continue. “Local-currency interest rates in the mortgage market remain high and price many people out of the market altogether,” says Zeelie. «It’s not unusual to see localcurrency interest rates can be as high as 18% in some places.» «Investors are less likely to enter this sort of market because returns aren’t as high as they are in the retail space,» he continues. «Investors develop in dollars while their tenants earn in local currency, so either they pass on the local currency risk to their tenants or they deal with it themselves. Whatever option they chose, the bottom line is that affordable

that profitable and have turned investors of this asset class.” At the same time, developers in South Africa, suffering restricted economic growth yet with a relatively well-developed property market, have begun to look north in search of opportunities. Indeed, some investors will continue to remain cautious because of the complexity and confusion that revolve around land and ownership laws, says Estienne De Klerk, executive director for Growthpoint Properties in South Africa, Euromoney’s best investment managers in South Africa and Africa in the survey. “South African investors are looking north and are looking at potential investments. But right now it’s just a toe in the water. There isn’t much being done on a large scale.” “Each jurisdiction has its own tax requirements, its own regulatory framework, its own risks and problems,» says De Klerk. «It can be off putting. But one thing that the region as a whole has in common is that there is a huge demand for real estate in subSaharan Africa. Governments will need to attract capital to ensure real-estate development. This will mean a re-haul of rules and

left to exit. With the company’s successful

residential real-estate developments aren’t all

regulations soon.”

Reprinted from Euromoney magazine September 2014

©Copyright Euromoney

The growth of retail space is probably one of the most important trends in sub-Saharan Africa at the moment Gerhard Zeelie Standard Bank

www.euromoney.com

9

Real estate

CEE: beyond Poland and Prague In the real-estate markets of central and eastern Europe the effects of the financial crisis have been unusually protracted By: Lucy Fitzgeorge-Parker

U

ntil recently, the region – excluding Russia, which is generally seen as a separate market – had shrunk in investors’ eyes to just two locations: Poland, famously the only country in Europe to escape recession in 2009 and boasting a supportive investment climate, absorbed as much as three-quarters of international flows; while the vast majority of the remainder was directed to Prague. The past six months, however, have seen a dramatic widening of investors’ horizons. While Poland is still attracting substantial interest, and is on course for its best year since 2006, the rest of the region is finally starting to play catch-up. In the first half of the year, just 50% of flows into CEE went into Polish assets, according to Jones Lang LaSalle (JLL). A further 25% went to the Czech Republic – including, but no longer limited to, Prague – while Romania and Hungary attracted 15% and 8% respectively. According to Jos Tromp, head of CEE research and consulting at CBRE, this expansion of interest has been driven by a combination of the improving economic performance of countries such as Romania and Hungary – both of which, along with their real-estate markets, suffered badly in the financial crisis – and a shortage of investment opportunities in the most popular locations. “Poland has been the investment sweetheart of central Europe in recent years, particularly for equity-driven investors, and as a result it has become increasingly difficult to acquire good quality assets,” he says. Also skewing the imbalance between supply and demand, say analysts, are the high levels of liquidity spilling over from western Europe into CEE in search of yield – “there

was at the peak in 2007,” says Tromp – and the growing proportion of assets in the region held by long-term investors. The Prague market has traditionally been characterized by a high percentage of buy-to-hold investors, but this trend is now expanding to include the rest of CEE. The shopping-centre industry has seen most of its top assets snapped up by long-term buyers, while a similar process is now under way in the industrial and logistics sector. This, in turn, reflects the changing nature of the investor base and investment strategies in the region, says Troy Javaher, head of capital markets CEE at JLL. “Whereas two years ago, investors were looking for prime, risk-averse opportunities on a much smaller scale, now the focus for many funds is on acquiring portfolios or ideally entering into a partnership with a proven platform, and doing it on a scale that allows them to rapidly get a footprint in several countries,” he says. Gaining scale, he adds, also gives investors the opportunity to consider different types of exit – a consideration that is particularly important to the increasing

“The terms are not great, but they are improving, and we were seeing very little new lending even 18 months ago” Troy Javaher, Jones Lang LaSalle

is more equity in the market now than there

10

Reprinted from Euromoney magazine September 2014

number of big North American funds getting involved in CEE. These include, most notably, Blackstone, which has been on a shopping spree in the region this summer, buying more than €540 million of assets in three transactions through its European logistics platform Logicor. Fellow US funds BlackRock and Lone Star have also moved into CEE, as have Canadian pension behemoth PSP Investments and the Canadian Pension Plan Investment Board, and the region has started to attract interest from further afield. Javaher reports that the €1.6 billion CTP industrial/logistics portfolio, being marketed by JLL, has caught the eye of buyers in the Middle East and Asia as well as North America. On the debt-finance side, market participants report similar trends, in terms of the volumes on offer and the markets for which funding is available. “Debt financing has always been very solid in Poland and there is also a fair amount of liquidity in Czech Republic, but we are starting to see banks returning to real-estate lending in Romania and Hungary,” says Javaher. “The terms are not great, but they are improving, and we were seeing very little new lending even 18 months ago.” Robert Sztemberg, head of corporate finance at JLL Poland, adds that, while banks remain relatively conservative in terms of loan-to-value and maturities, ticket sizes have been increasing in the past 12 months and single-bank loans of €100 million or more are not uncommon. He also notes that non-traditional investors, such as debt funds, are stepping in to fill the gap in countries – such as Romania and Hungary – where some banks are still reluctant to lend. In Russia, meanwhile, the effects of the economic slowdown and Ukrainian crisis have yet to make a substantial impact on the real-estate market, say analysts, due to the predominance of local – including Commonwealth of Independent States – money in the investor base. A fall-off in flows has been seen. Whereas last year Russia accounted for 52% of the total CEE investment market, according to CBRE, compared with 30% for Poland, in the first half of this year the two countries have seen roughly equal levels of investment.

©Copyright Euromoney

www.euromoney.com

Beware the local potholes Latin American real estate offers rich opportunities, but local conditions can trip the unwary By: Rob Dwyer

R

eal estate in Latin America offers big investment opportunities, but the national landscapes vary widely and local expertise is vital for foreign investors exploring the sector. For example, it is not surprising that this year’s top-ranked real-estate developer is commercial property-focused Mexico Retail Properties, a jump from fourth place in last year’s survey. Any developer with exposure to the housebuilding sector has taken a hit this year from the fallout of the new government’s change in residential housing policy. New president Enrique Peña Nieto essentially did a 180-degree switch in new housing policy: away from the urban sprawl of housing estates based in remote areas to vertical developments in already urban locations. As well as taking a hit on demand for current projects – as potential buyers fear ghost-town developments – the financing of high-rise blocks presents new capital-intensive challenges for homebuilders. The sector is still working its way through the new financial reality. Mexico Retail Properties’ commercial focus has enabled the Mexican subsidiary of US real estate investment company Black Creek Group, to navigate much calmer waters. The Mexican banks have also had to take financial hits as the financial situation of leading housebuilders such as Geo, Urbi and Homex collapsed, exposing their financing partners. Despite BBVA’s large share of this sector in Mexico, it fared better than some other banks, such as Banorte, which have had to write-off loans and make provisions for future losses. Jones Lang LaSalle is rated as best

Argentina. This base of country expertise explains why it also heads the regional rankings. Notably, Colliers International is now ranked first in both Colombia and Chile (up from fifth in Chile last year) and rounds out the top five regional advisers with CBRE, Cushman & Wakefield and Baker & McKenzie. In Brazil – the largest real-estate market in Latin America – investors are seeing lower returns than in the admittedly spectacular past. Commercial and residential real estate valuations of up-scale neighbourhoods in Rio de Janeiro now compete on a square-metre basis with Tokyo, New York and London; developers, analysts and financiers alike are discussing if there is room for further price rises. However, gentrification of lower middle-class neighbourhoods continues to provide opportunities, while growing cities in the north and the interior also offer growth rates seen in the south-east in recent years for companies

Commercial and residential real estate valuations of upscale neighbourhoods in Rio de Janeiro now compete on a square-metre basis with Tokyo, New York and London

adviser in Mexico, as well as in Brazil and

Reprinted from Euromoney magazine September 2014

that operate nationwide. In São Paulo, the local government has introduced a new land taxation and planning system to exert greater control on future development. This may add costs to new developments. The legislation was passed in July, and it is still too early to judge the implications and developers’ ability to pass on these costs to the end-user. However, some analysts predict that they could increase land values by up to 40% in up to 80% of the city – a large potential negative for homebuilders concentrated in the city. Cyrela Brazil Realty is again ranked top Brazilian developer, although its ability to maintain this ranking next year will be carefully watched as it represents the middle-income residential segment that is cooling off most quickly. Low income-focused builders such as MRV and Direcional might be more in favour in the next 12 months. Still, Cyrela’s position reflects that it has been outperforming its sector in sales velocity and launches and – importantly for the company’s financial results – it has resorted to less discounting to date than its competitors, in particular Rossi and PDG. Itaú Unibanco is the best-ranked bank, and its scale – both depth and breadth – enabled it to reach the summit, increasing one ranking position from last year. The bank’s strength in Brazil – as well as growing operations in other markets such as Argentina and Paraguay – also make it the top-ranked regional player. The universal banks BBVA, Santander and HSBC are ranked second, third and fourth respectively. BTG Pactual – the Brazilian financial institution – is ranked fifth best regional bank, as well as leading investment manager. This dual listing accurately reflects BTG’s position in the market as financier and investment manager – the group’s private equity fund has long taken stakes in real estate companies such as BR Properties – and perhaps gives BTG Pactual the most rounded view on the Brazilian market. The bank is also expanding fast in the region – with acquisitions in Colombia and Chile and greenfield operations in Mexico. Although real estate isn’t its core focus, BTG Pactual will certainly be exploring opportunistic ventures to profit from the room for growth in real estate in the Andean countries.

©Copyright Euromoney

www.euromoney.com

11

Real estate survey 2014

Subscribers get to see the full real estate results

GLOBAL ADVISORS AND CONSULTANTS – OVERALL

4

5

Colliers International

184

4

12

Raheja Developers

103

5

3

Clifford Chance

163

5

10

Mitsubishi Estate

100

2014

Score

1

1

KPMG

785

1

2

CapitaLand

170

4477

2

4

PricewaterhouseCoopers

724

2

10

Westfield Group

147

3

Deloitte

701

3

5

Mitsui Fudosan

146

1

2013 1

CBRE

RETAIL

2

2

Jones Lang LaSalle

4473

3

3

3

Colliers International

4046

4

2

Ernst & Young

681

4

9

Wanda Group

127

4

4

Cushman & Wakefield

2916

5

5

Colliers International

168

5

7

Unibail-Rodamco

122

5

5

DTZ

1664

RESEARCH

6

8

Deloitte

1064

1

1

Colliers International

955

1

1

Hines

265

7

6

Ernst & Young

1038

2

3

CBRE

819

2

11

Sun Hung Kai Properties

139

8

7

KPMG

963

3

2

Jones Lang LaSalle

770

3

6

Brookfield

132

9

11

Savills

906

4

4

Cushman & Wakefield

533

4

8

Kerry Properties

119

860

5

5

DTZ

345

5

2

Tishman Speyer

106

10

9

PricewaterhouseCoopers

OFFICE/BUSINESS

DEVELOPERS – OVERALL

AGENCY/LETTING

INDUSTRIAL/WAREHOUSE

1

3

Colliers International

1164

2014

2013

Score

1

2

Global Logistic Properties

879

2

2

CBRE

1126

1

3

Global Logistic Properties 1184

2

1

Prologis

659

3

1

Jones Lang LaSalle

1103

2

1

Hines

700

3

3

Goodman

287

4

4

Cushman & Wakefield

786

3

2

Prologis

659

4

4

Panattoni

101

5

5

DTZ

380

4

4

Mitsui Fudosan

572

5

6

Gazeley

5

7

Raheja Developers

503

LEISURE/HOTEL

972

6

13

Mitsubishi Estate

490

1

1

Hilton

10

Sun Hung Kai Properties

477

2

3

Starwood Hotels & Resorts

VALUATION 1

1

CBRE

94 214

2

3

Colliers International

968

7

3

2

Jones Lang LaSalle

776

8

5

CapitaLand

435

Worldwide

176

4

5

Cushman & Wakefield

645

9

18

Vanke

388

3

16

Hyatt

139

5

4

DTZ

476

10

23

Wanda Group

332

4

4

Accor

130

5

6

Four Seasons Hotels

120

RESIDENTIAL

LEGAL SERVICES

12

TAXATION SERVICES

1

1

Baker & McKenzie

422

1

1

Vanke

292

MIXED

2

2

DLA Piper

232

2

5

Mitsui Fudosan

137

1

1

Hines

150

3

4

Allen & Overy

190

3

2

Hines

128

2

8

Sun Hung Kai Properties

112

Reprinted from Euromoney magazine September 2014

©Copyright Euromoney

www.euromoney.com

@euromoney.com 3

7

CapitaLand

101

3

2

Bank of America ML

79

4

13

Raheja Developers

94

4

7

Citi

77

5

5=

Mitsui Fudosan

90

Morgan Stanley

70

BANKS – OVERALL

5

M&A ADVISORY

WESTERN EUROPE ADVISORS AND CONSULTANTS – OVERALL 2014

2013

Score

1

1

Goldman Sachs

226

1

1

CBRE

Goldman Sachs

698

2

3

JPMorgan

173

2

2

Jones Lang LaSalle

3

HSBC

572

3

2

Morgan Stanley

134

3

3

BNP Paribas Real Estate

3

1

JPMorgan

563

4

14

HSBC

125

4

6

DTZ

4

4

Morgan Stanley

375

5

5

Citi

91

5

4

Cushman & Wakefield

5

7

Citi

374

DEVELOPERS – OVERALL

6

6

Bank of America ML

328

INVESTMENT MANAGERS – OVERALL

1

1

Hines

7

9

Credit Suisse

326

2014

2013

Score

2

15

Land Securities

8

23

Bank of China

305

1

7

LaSalle Investment Mgmt

286

3

3

Prologis

9

5

Deutsche Bank

290

2

1

Blackstone

265

4

2

Bouygues

10

10

Standard Chartered

273

3

2

Axa Real Estate

231

5

4

Hochtief

4

10

Goldman Sachs

193

BANKS – OVERALL

2014

2013

1

2

2

LOAN FINANCE 1

1

HSBC

170

5

4

JPMorgan

184

1

1

Deutsche Bank

2

2

JPMorgan

123

6

3

CBRE

169

2

2

BNP Paribas

3

10

HDFC

103

7

5

GE Capital Real Estate

153

3

7

JPMorgan

4

5

Citi

100

8

17

Morgan Stanley

151

4

5

Credit Suisse

5

15

Bank of China

99

9

9

Colliers International

147

5

18

ABN Amro

Cushman & Wakefield

119

EQUITY FINANCE

10

1

2

Goldman Sachs

210

INVESTMENT MANAGERS – OVERALL

2

1

JPMorgan

149

1

1

Axa Real Estate

3

3

Morgan Stanley

121

2

6

LaSalle Investment Management

4

7

Credit Suisse

111

3

3

BNP Paribas Real Estate

5

9

HSBC

106

BY REGION, INCLUDING COUNTRIES

4

8

Blackstone

Note: All country results printed here refer

5

7

Generali

DEBT CAPITAL MARKETS 1

5

HSBC

138

to overall category winners unless otherwise

2

6

Goldman Sachs

123

stated

Reprinted from Euromoney magazine September 2014

©Copyright Euromoney

www.euromoney.com

13

Real estate survey 2014

BELGIUM ADVISORS AND CONSULTANTS

DEVELOPERS

BANKS – OVERALL

1

1

1

HSBC

2014

2013

BANKS

2

10

Bank of China

1

1

3

5

Standard Chartered

INVESTMENT MANAGERS

4

3

Goldman Sachs

1

5

2

Citi

CBRE

DEVELOPERS 1

4

ALLFIN

1

6=

OVG

1

ABN Amro

1

ASR Vastgoed

PORTUGAL ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS – OVERALL

FRANCE ADVISORS AND CONSULTANTS

2014

2013

1

1

1

2014

2013

1

1

BANKS 1

3

ING

CBRE

7

Blackstone

DEVELOPERS

3

5

Colliers International

1

4

4

JPMorgan

5

25

Goldman Sachs

1

1

Bouygues

CBRE

1

BANKS

1

LaSalle Investment Management

2

DEVELOPERS BANKS

Sonae Sierra

INVESTMENT MANAGERS

AUSTRALIA ADVISORS AND CONSULTANTS

1

1

Banco Espirito Santo

2014

2013

SPAIN ADVISORS AND CONSULTANTS

1

1

GERMANY ADVISORS AND CONSULTANTS

2014

2013

1

1

BANKS

2014

DEVELOPERS

1

1

BNP Paribas

INVESTMENT MANAGERS 1

1

1

Axa Real Estate

2013 2

CBRE

1 1

1

BANKS

1

1

1

Hochtief

1

1

Deutsche Bank

INVESTMENT MANAGERS 1

LaSalle Investment Management

Norfin

Aguirre Newman

1

DEVELOPERS BANKS

Metrovacesa

1

BBVA

1

2 1

2014

2013

1

1

1

Axa Real Estate

SWITZERLAND ADVISORS AND CONSULTANTS

Mirvac ANZ

CHINA ADVISORS AND CONSULTANTS – OVERALL

INVESTMENT MANAGERS 1

CBRE

DEVELOPERS

Colliers International

DEVELOPERS – OVERALL 1

1

Global Logistic Properties

OFFICE/BUSINESS

GREECE ADVISORS AND CONSULTANTS

2014

2013

1

3

2014

2013

DEVELOPERS

INDUSTRIAL/WAREHOUSE

1

1

1

1

CBRE

BANKS

1

1

1

Lamda Development

CBRE

1

DEVELOPERS

Implenia

2

Credit Suisse

UNITED KINGDOM ADVISORS AND CONSULTANTS

2014

2013

1

1=

1

CBRE

1=

2

Jones Lang LaSalle

2

1

2

BANKS

1

1

5=

Green Property

1

1

Bank of Ireland

2

IPUT

ITALY ADVISORS AND CONSULTANTS 2014

2013

1

1

1

3 1

Sun Hung Kai Properties Global Logistic Properties

7 1

1

Wanda Group

MIXED 1

3

Sun Hung Kai Properties

BANKS – OVERALL 1

1

Bank of China

Land Securities

INVESTMENT MANAGERS – OVERALL

HSBC

1

INVESTMENT MANAGERS

INVESTMENT MANAGERS 1

Jones Lang LaSalle

DEVELOPERS

DEVELOPERS

1

LEISURE/HOTEL

IRELAND ADVISORS AND CONSULTANTS

BANKS

Axa Real Estate

5=

Colliers International

HONG KONG ADVISORS AND CONSULTANTS

ASIA ADVISORS AND CONSULTANTS – OVERALL

2014

2013

1

4

2014

2013

1

1

1

Colliers International

BANKS

Colliers International

DEVELOPERS 2

2

2

CBRE

1

3

3

Jones Lang LaSalle

INVESTMENT MANAGERS

1

4

4

DTZ

1

Cushman & Wakefield

DEVELOPERS – OVERALL

INDIA ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

1

1

Global Logistic Properties

2014

2013

1

2

3

Mitsui Fudosan

1=

4

Cushman & Wakefield

NETHERLANDS ADVISORS AND CONSULTANTS

3

4

Raheja Developers

1=

2

Jones Lang LaSalle

4

9

Mitsubishi Estate

DEVELOPERS

1

5

6

Sun Hung Kai Properties

1

1

Jones Lang LaSalle Hines

1

2 1

1

5 Mediobanca BNP Paribas Real Estate

CBRE

Reprinted from Euromoney magazine September 2014

11

©Copyright Euromoney

1

Sino Group

DEVELOPERS BANKS

14

Subscribers get to see the full real estate results

3

1

HSBC Sun Hung Kai Properties

Raheja Developers

www.euromoney.com

@euromoney.com BANKS 1

1

BANKS HDFC

1

1

DBS

CROATIA ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

INVESTMENT MANAGERS

2014

2013

1

1

1

1

3

Axis Bank

1

ARA Asset Management

Jones Lang LaSalle

INDONESIA ADVISORS AND CONSULTANTS

TAIWAN ADVISORS AND CONSULTANTS

DEVELOPERS

2014

2013

1

1

1

DEVELOPERS

CZECH REPUBLIC ADVISORS AND CONSULTANTS

1

Cathay Real

2014

2013

Estate Development

1

1

Colliers International

DEVELOPERS 1

1 3

KPMG

1

Agung Podomoro Group

BANKS 1

1

Bank Central Asia

1

1

VMD

CBRE

DEVELOPERS

BANKS

INVESTMENT MANAGERS

1

3

HSBC

1

7

Skanska

THAILAND ADVISORS AND CONSULTANTS

BANKS

JAPAN ADVISORS AND CONSULTANTS

2014

2013

INVESTMENT MANAGERS

1

1

2014

2013

DEVELOPERS

1

1

1

1

Colliers International

CBRE

1

Jones Lang LaSalle

1

Central Group (Thailand)

1

3

1

Helaba Invesco

HUNGARY ADVISORS AND CONSULTANTS

DEVELOPERS

BANKS

1

Global Logistic Properties

1

DEVELOPERS

SMFG

VIETNAM ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

2014

2013

1

1

1

POLAND ADVISORS AND CONSULTANTS

8=

BANKS 1

1

LaSalle Investment Management

1

Kasikornbank

CBRE

2014

2013

1

3

1

1

KOREA ADVISORS AND CONSULTANTS

DEVELOPERS

2014

2013

1

1

7

2014

2013

BANKS

1

1

CBRE

1

1

Keppel Land

Cushman & Wakefield TriGranit

Ernst & Young

DEVELOPERS

8

HSBC

1

4

Echo Investment

DEVELOPERS

INVESTMENT MANAGERS

BANKS

1

Lotte Group

1

1

Hana Bank

ROMANIA ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

CENTRAL & EASTERN EUROPE ADVISORS AND CONSULTANTS – OVERALL

2014

2013

1

2014

2013

1

1

MALAYSIA ADVISORS AND CONSULTANTS

1

1

Jones Lang LaSalle

DEVELOPERS

2

3

CBRE

1

2014

2013

3

2

Cushman & Wakefield

BANKS

1

2

2

BANKS 1

1 3=

Mirae Asset

2

VinaCapital

1

1

Colliers International AFI Group

4

6

Ernst & Young

1

DEVELOPERS

5

4

Colliers International

1

DEVELOPERS – OVERALL

RUSSIA ADVISORS AND CONSULTANTS

1

8

Hines

2014

2013

2

6

Raven Russia

1

2

AFI Group

DEVELOPERS

12=

CBRE Mah Sing

BANKS 1

2

Maybank

3

Aareal Bank

PHILIPPINES ADVISORS AND CONSULTANTS

3 4

3

AIG/Lincoln

1

2014

2013

5

20

O1 Properties

BANKS

1

1

BANKS – OVERALL

1

DEVELOPERS

1

1

Sberbank

1

Colliers International

7= 1

Erste Bank

Jones Lang LaSalle Hines Sberbank

2

2

VTB

SLOVAKIA ADVISORS AND CONSULTANTS

BANKS

3

3

Aareal Bank

2014

2013

1

4

6

UniCredit

1

5

5

7

Morgan Stanley

DEVELOPERS

1 1

Ayala Land Bank of the Philippine Islands

INVESTMENT MANAGERS 1

3

JPMorgan

SINGAPORE ADVISORS AND CONSULTANTS 2014

2013

1

1

Colliers International

DEVELOPERS 1

3

Keppel Land

Reprinted from Euromoney magazine September 2014

INVESTMENT MANAGERS – OVERALL

1

5=

CBRE J&T Real Estate

1

1=

Morgan Stanley

TURKEY ADVISORS AND CONSULTANTS

2

4

Hines

2014

2013

3

5

Blackstone

1

2

4

14

Raven Russia

DEVELOPERS

5

JPMorgan

©Copyright Euromoney

1

2

Jones Lang LaSalle Ronesans Gayrimenkul Yatirim

www.euromoney.com

15

Real estate survey 2014

BANKS 1

1

Garanti

Subscribers get to see the full real estate results

DEVELOPERS

2

11

Rafal

1

3

5

Sodic

4

6

Al-Hokair Group

5

2

Al-Futtaim Group

INVESTMENT MANAGERS

BANKS

1

1

1=

Blackstone

NORDIC & BALTIC ADVISORS AND CONSULTANTS – OVERALL 2014

2013

YIT

1

Nordea

INVESTMENT MANAGERS

BANKS – OVERALL

1

Sveafastigheter

1

4

Samba

LATVIA ADVISORS AND CONSULTANTS

2

1

Al Rajhi Bank

3

2

HSBC

4

3

Alinma Bank

5

7

National Commercial Bank

1

1

1

DTZ

2014

2013

2

3

NewSec

1

1

3

2

Jones Lang LaSalle

DEVELOPERS

4

4

CBRE

1

5

6

Catella

BANKS

Colliers International

3

Linstow

DEVELOPERS – OVERALL

1

1

1

NCC

INVESTMENT MANAGERS

2

2

Skanska

1

3

3

YIT

1

SEB

1

BPT Real Estate

4

4

JM

LITHUANIA ADVISORS AND CONSULTANTS

5

7

SRV Group

2014

2013

1

1

BANKS – OVERALL 1

1

SEB

2

2

Nordea

1

3

3

DNB Bank

4

8

Svenska Handelsbanken

BANKS

5

4

Leimdorfer

INVESTMENT MANAGERS – OVERALL

NewSec

DEVELOPERS

1

2 1 2

2

Aberdeen

2014

2013

3

3

Niam

1

1

4

4

Areim

5

6

Pareto

DEVELOPERS

1

1

Sadolin & Albaek

DEVELOPERS 1

1

NCC

BANKS 1

1

Nordea

INVESTMENT MANAGERS 1

1

Aberdeen

ESTONIA ADVISORS AND CONSULTANTS 2014

2013

1

1

Seven Real Estate Advisors

DEVELOPERS 1

4

Merko

BANKS 1

2

Swedbank

INVESTMENT MANAGERS 1

2

Capital Mill

FINLAND ADVISORS AND CONSULTANTS 2014

2013

1

1

Catella

Olav Thon Gruppen DNB Bank

INVESTMENT MANAGERS 1

1

Pareto

SWEDEN ADVISORS AND CONSULTANTS 2014

2013

1

1

DTZ

DEVELOPERS 1

1

Skanska

1

SEB

INVESTMENT MANAGERS 1

2

Areim

MENA ADVISORS AND CONSULTANTS – OVERALL 2014

2013

1

1

2 3

2 7

5

EFG-Hermes

BAHRAIN ADVISORS AND CONSULTANTS 2014

2013

1

CBRE

Jones Lang LaSalle

DEVELOPERS 1

1

Emaar Properties

SAUDI ARABIA ADVISORS AND CONSULTANTS 2014

2013

1

1

Colliers International

DEVELOPERS 6=

Rafal

BANKS 1

3

Samba

INVESTMENT MANAGERS 1

1

Colliers International

UNITED ARAB EMIRATES ADVISORS AND CONSULTANTS 2014

2013

1

3

Colliers International

DEVELOPERS 1

BANKS 1

Beltone

1

BANKS

1

Emaar Properties

BANKS 1

2

Emirates NBD

INVESTMENT MANAGERS 1

Colliers International

LATIN AMERICA ADVISORS AND CONSULTANTS – OVERALL

Colliers International

2014

2013

Jones Lang LaSalle

1

1

Jones Lang LaSalle

Ernst & Young

2

2

CBRE

4

Cushman & Wakefield

4

12

CBRE

3

5

6

Century 21

4

3

Colliers International

5

5

Baker & McKenzie

DEVELOPERS – OVERALL 1

Reprinted from Euromoney magazine September 2014

Akershus Eiendom

1

Orascom

4

1

NORWAY ADVISORS AND CONSULTANTS

1

6

2013

2

2013

Abraj Capital

3

1

Sveafastigheter

2014

Colliers International

7=

2014

Lords LB Asset Management

3

1

2

SEB

1

1

1

Hanner

INVESTMENT MANAGERS 1

INVESTMENT MANAGERS – OVERALL

EGYPT ADVISORS AND CONSULTANTS

1

DENMARK ADVISORS AND CONSULTANTS

16

1

1

Emaar Properties

©Copyright Euromoney

www.euromoney.com

@euromoney.com

1

Cyrela Brazil Realty

MEXICO ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

1 2

4

Irsa

2014

2013

3

Raghsa

1

1

4

Mexico Retail Properties

DEVELOPERS

AFRICA ADVISORS AND CONSULTANTS – OVERALL

Global Logistic Properties

1

2014

DEVELOPERS – OVERALL

5

5

4

BANKS – OVERALL

BANKS

1

6

Itaú Unibanco

1

2

2

BBVA

3

1

4 5

Mexico Retail Properties

6=

Goldman Sachs

2013

1

CBRE

2

Knight Frank

3

Jones Lang LaSalle

Santander

VENEZUELA BANKS

4

KPMG

4

HSBC

2014

5

Norton Rose

7

BTG Pactual

INVESTMENT MANAGERS – OVERALL 1

Jones Lang LaSalle

1

6

BTG Pactual

1

BBVA

2013

1

Citi

DEVELOPERS – OVERALL

NORTH AMERICA ADVISORS AND CONSULTANTS – OVERALL

1

Actis

2

Abland

3

Atterbury

2014

2013

4

Zenprop UPDC

2

Santander

3

LaSalle Investment Mgmt

1

3

Cushman & Wakefield

5

4

Credit Suisse

2

2

CBRE

BANKS – OVERALL

Hemisferio Sul Investimentos

3

6

Deloitte

1

Standard Bank

4

1

Jones Lang LaSalle

2

Nedbank

5

11

Avison Young

3

Rand Merchant Bank

DEVELOPERS – OVERALL

4

Investec

1

Brookfield

5

Union Bank of Nigeria

Hines

5

3

ARGENTINA ADVISORS AND CONSULTANTS 2014

2013

1

3=

Jones Lang LaSalle

6

DEVELOPERS

Prologis

INVESTMENT MANAGERS – OVERALL

2

1

1

3

7=

Related

1

Growthpoint

Simon Property Group

2

Actis

BANKS – OVERALL

3

Standard Bank

1

2

Goldman Sachs

4=

ARM Properties

DEVELOPERS

2

1

JPMorgan

4=

RMB Westport

1

3

3

Morgan Stanley

4

6

Bank of America ML

ANGOLA ADVISORS AND CONSULTANTS

5

8

Credit Suisse

2014

1

Irsa

BRAZIL ADVISORS AND CONSULTANTS

4

2014

2013

1

1 1

Jones Lang LaSalle Cyrela Brazil Realty

BANKS 1

2

Itaú Unibanco

INVESTMENT MANAGERS

5

3=

INVESTMENT MANAGERS – OVERALL

2013

1

Proprime

CHILE ADVISORS AND CONSULTANTS

1

6=

Goldman Sachs

MOZAMBIQUE ADVISORS AND CONSULTANTS

2

1

GE Capital Real Estate

2014

2014

2013

3

Cushman & Wakefield

1

1

5

JPMorgan

1

8=

BTG Pactual

2013 REC – Real Estate Consulting

DEVELOPERS

5=

Morgan Stanley

NIGERIA ADVISORS AND CONSULTANTS

1

Territoria

5=

UBS

2014

2013

1

2

Banco de Chile

CANADA ADVISORS AND CONSULTANTS

INVESTMENT MANAGERS

2014

2013

1

1

1

4

1

Colliers International

BANKS 1

3 6=

Independencia

4

3

Cushman & Wakefield

CBRE

DEVELOPERS 1

Actis

BANKS

COLOMBIA ADVISORS AND CONSULTANTS

DEVELOPERS

1

1

Cadillac Fairview

2014

2013

BANKS

SOUTH AFRICA ADVISORS AND CONSULTANTS

1

1

CIBC

Colliers International

DEVELOPERS 1

7=

Cusezar

BANKS 1

1

BanColombia

1

1 3

1

2014

2013

UNITED STATES ADVISORS AND CONSULTANTS

1

1

2014

2013

1

1

4

Cushman & Wakefield

Standard Bank

CBRE

DEVELOPERS 1

Abland

BANKS

INVESTMENT MANAGERS

DEVELOPERS

1

1

1

INVESTMENT MANAGERS

2

Terranum

1

Hines

BANKS 1

Reprinted from Euromoney magazine September 2014

2

1

1 1

Standard Bank Growthpoint

Goldman Sachs

©Copyright Euromoney

www.euromoney.com

17

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