Maurice Dunlevy | June 11, 2009
Article from: The Australian
AUSTRALIA'S newest real estate investment trust has been launched into a global market described yesterday as being on the road to recovery.
"Early March was probably the bottom for REIT markets globally," said Steve Carroll, of CBRE Global Real Estate Securities, which will manage the Advance Global Property Fund on behalf of St George Bank-controlled investment firm Advance Asset Management.
REITs had raised $US25billion ($31.2bn) globally in equity to repay debt and provide themselves with ready cash to buy properties that would become available over the next 12 months, he said.
"There are now a growing number of companies positioning their capital structures to buy what we believe will be heaps of distressed commercial real estate assets that will come to market in the coming 12 to 24 months," Mr Carroll said.
Speaking from Baltimore in the US, Mr Carroll, a senior managing director and co-chief investment officer for CBRE GRES, said the turnaround would probably take 12 to 24 months, but REITs that led the downturn in commercial property markets would lead their recovery.
Mr Carroll said global REITs had fallen 55 per cent since their peak in February 2007, a correction that implied a 40 per cent decline in private market values.
However, he said, not all property markets were in as much trouble as those in the financial centres of Britain and the US.
Better performers included continental Europe, Asia, Canada and even a number of US markets.
CBRE has joined forces in Australia with Advance Asset Management, which is owned by Westpac, to offer retail investors the opportunity to invest in global property funds. GRES has about $US1.7bn worth of assets under management.
Solely managed by CBRE, the fund is available on the Asgard, BT and Colonial First State platforms.
Launched last week, it has so far raised $500,000.
According to Advance Asset Management, it has a $69 million exposure to the fund.
... if REIT's are your target market, this could be good news. Their ability to raise such a large amount of equity, albeit globally, is commendable. Furthermore, the news that they will be buying up distressed commercial properties is positive... although, the US commercial real estate market may still have a little more freefalling to do, the REIT's will be buying up distressed properties.
In my opinion, there will be an opportunity to sell our exterior cleaning services to the managers of these properties as they are likely to redevelop and maintain them.
Article from: The Australian
AUSTRALIA'S newest real estate investment trust has been launched into a global market described yesterday as being on the road to recovery.
"Early March was probably the bottom for REIT markets globally," said Steve Carroll, of CBRE Global Real Estate Securities, which will manage the Advance Global Property Fund on behalf of St George Bank-controlled investment firm Advance Asset Management.
REITs had raised $US25billion ($31.2bn) globally in equity to repay debt and provide themselves with ready cash to buy properties that would become available over the next 12 months, he said.
"There are now a growing number of companies positioning their capital structures to buy what we believe will be heaps of distressed commercial real estate assets that will come to market in the coming 12 to 24 months," Mr Carroll said.
Speaking from Baltimore in the US, Mr Carroll, a senior managing director and co-chief investment officer for CBRE GRES, said the turnaround would probably take 12 to 24 months, but REITs that led the downturn in commercial property markets would lead their recovery.
Mr Carroll said global REITs had fallen 55 per cent since their peak in February 2007, a correction that implied a 40 per cent decline in private market values.
However, he said, not all property markets were in as much trouble as those in the financial centres of Britain and the US.
Better performers included continental Europe, Asia, Canada and even a number of US markets.
CBRE has joined forces in Australia with Advance Asset Management, which is owned by Westpac, to offer retail investors the opportunity to invest in global property funds. GRES has about $US1.7bn worth of assets under management.
Solely managed by CBRE, the fund is available on the Asgard, BT and Colonial First State platforms.
Launched last week, it has so far raised $500,000.
According to Advance Asset Management, it has a $69 million exposure to the fund.
... if REIT's are your target market, this could be good news. Their ability to raise such a large amount of equity, albeit globally, is commendable. Furthermore, the news that they will be buying up distressed commercial properties is positive... although, the US commercial real estate market may still have a little more freefalling to do, the REIT's will be buying up distressed properties.
In my opinion, there will be an opportunity to sell our exterior cleaning services to the managers of these properties as they are likely to redevelop and maintain them.
