Coronavirus

The consequences of the coronavirus pandemic for real estate have not surprised so far, even if some sector leaders are complaining, says David Hodes, managing partner at capital advisory firm Hodes Weill & Associates.

After a lofty point in the investment cycle saw the definition of prime real estate become flexible, investors are now unwilling to tolerate extra risk without additional rewards.

Distressed debt and special sits, food production, healthcare and certain VC strategies have received growing attention as a result of the coronavirus crisis.

Transactions fell out of contract in March at three times the normal monthly rate, according to RCA.

The firm thinks using digital platforms for capital raising can 'only become more important as travel will be difficult for a while.'

Kayne Anderson’s speedy $1.3bn real estate debt fundraise shows the virtue of waiting for the right opportunity and the right time.

Last month’s real estate debt fire sales at the outset of the covid-19 outbreak in the US were just the tip of the iceberg for private real estate

Hines, which recently acquired a green apartment portfolio in Denmark, sees ESG investing as a form of ‘future-proofing’ during times of crisis.

The firm offered virtual site visits to investors via video for the first time after travel was restricted in China due to the covid-19 outbreak.

China, Hong Kong and Singapore were the property markets most affected by the pandemic, with investment volumes plummeting by more than 60%.