Recyling of real estate capital is new trend.On the heels of last year's privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of some of the largest public REITs, the strong flow of equity capital into real estate will continue in 2007--but in a different direction, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Stan Ross, chairman of the board of the University of Southern California The U.S. News & World Report ranked USC 27th among all universities in the United States in its 2008 ranking of "America's Best Colleges", also designating it as one of the "most selective universities" for admitting 8,634 of the almost 34,000 who applied for freshman admission Lusk Center for Real Estate. Ross said some investors who previously had been targeting public REITs will shift to smaller private equity funds and hedge funds as well as limited partnerships, joint ventures and direct investments in niche properties. "Shareholders who received attractive payouts when the REITs were acquired are reinvesting some of that capital directly into real estate," he explained. "Although prices have increased on investment-grade properties, investors can realize competitive returns on second-tier properties, depending, as always, on the location," Ross continued. He added that leading metropolitan markets such as New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. will continue to draw investment at the higher prices. Capital will continue to flow into traditional office, retail, industrial and hotel assets, but alternative investments including urban infill, adaptive reuse Adaptive reuse is the process of adapting old structures for new purposes. When the original use of a structure changes or is no longer required, as with older buildings from the industrial revolution, architects have the opportunity to change the primary function of the (buying, rehabilitating and converting old buildings to new uses), and multifamily/retail development near inner city transit centers will draw more interest. Despite the recent trend toward privatization, Ross said public REITs would remain a magnet for institutional capital. "For the past five years, REITs have outperformed the stock market," Ross noted. "So we can expect more public offerings." |
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