New York partner Chris Smith, global head of the firm’s Real Estate practice, participated in Financier Worldwide’s TalkingPoint panel discussion on “Investments and Acquisitions in the Real Estate Sector.”
The panel discussed how investment and acquisition activity in the real estate sector has evolved, the factors driving today’s real estate transactions, and the current lending environment and financing opportunities, including accessibility to credit. In addition, the panel examined the fundamental goal of investors in targeting unique real estate investment properties that will ensure capital preservation and provide exceptional returns both in developed and emerging markets.
Smith noted that “lower expected return hurdles, availability of credit and cross-border infusion of capital, and an abundance of available liquidity, are all contributing to a robust US market. US Investors still speak of seeking 15 to 20 percent returns, however from our vantage point, they are constantly and quickly moving down the yield curve as they seek new investments, recognizing that in many cases there may have been a fundamental shift in the opportunity to earn such returns, such that to compete effectively investors often have to recognize lower potential returns that are attributable to long-term real estate investments.”