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Global Capital Diversification: Europe in Context | 2019 Q1

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Global real estate assets under management (“REAUM”) doubled over the latter half of the investment cycle with the top 100 global fund managers increasing REAUM from $1.6 trillion in 2014 to $3 trillion at end 2018. Meanwhile REAUM held by the top 10 global fund managers expanded by 60%, pointing to increasing levels of global capital diversification.

Considering that increasing allocations to real estate from global institutions reached at least $840 billion in 2018, Colliers believes this figure could be twice the size when accounting for HNWIs and family offices.

Given that the institutional allocation to real estate only reached 10.4% as of end 2018, further growth in investment demand is anticipated in the years ahead.  In fact, with the growing influence of high net-worth individuals (HNWIs), sovereign and family wealth and private equity changing the global capital landscape, growing capital sources will at least sustain investment volumes and push up pricing.

Colliers’ proprietary analysis of a range of global investors shows that at least two thirds of global investors either have, or are in the process of, deploying more funds in debt vehicles and alternative structures, some with a focus on development. This reflects the shift in acquisitions we have observed, as structural and late cycle factors shape activity.


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Global Capital Diversification: Europe in Context | 2019 Q1

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Related Experts
United Kingdom

Richard Divall

Director, Cross Border Capital Markets

London - West End

As Head of Cross Border Capital Markets, EMEA, I work with international clients who are interested in investing in the region and connect them with the best local Colliers expert based on their investment requirements. Conversely, I also help investors based in EMEA expand their portfolios to other regions around the world. Through my extensive connectivity in the global real estate market, I can connect capital with local expertise, regardless of location.

I work with a broad spectrum of clients including Sovereign Wealth Funds, global institutions, global private equity investors and high net worth individuals. Clients choose to work with me based on the full range of advisory services I provide including a macro view on local economies and property sectors, investor sentiment around the world and access to local buyers and sellers. 

Working with local offices in EMEA, we are able to provide a full range of advisory services including:

  • Local market reports
  • Financial analysis
  • Professional services
    • Asset management
    • Building surveys
    • Valuation
  • Initial tax advice
  • Banking finance

I have over 17 years real estate investment experience and during my career I have been involved in over £2billion in transactions in the UK.

 

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United Kingdom

Damian Harrington

Head of Research

London - West End

Damian Harrington is a Director and Head of Research for both Global Capital Markets and EMEA at Colliers. He has over 20 years of experience in the real estate industry living and working from various locations across EMEA including London, Dubai, Prague, Helsinki and Amsterdam. Damian is responsible for producing research for internal and external clients. His expertise helps to provide clients with global capital market trends and analysis, and connects them with strategic and actionable insights, such as the changing nature of global capital and the impact on global capital flows. Damian has produced numerous research papers and generated analysis of markets across all asset types - from residential to offices, retail to logistics and hotels to niche sectors such as life sciences, air cargo and data centres. Damian is a member of the EMEA location strategy team and a key member of Colliers ESG focus group.  He speaks regularly at internal global conferences, external industry events hosted by GRI, ULI and other key industry bodies, plus key annual events such as MIPIM and EXPO REAL.

Damian holds a Masters degree in European Property Development and Planning from University College London, a BPI Bachelor of Planning from the University of Amsterdam and a BA (Hons) in Town and Country Planning from Manchester University. He is also a qualified surveyor, holding an MRICS with the Royal Institute of Chartered Surveyors.

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