«Sovereign wealth funds have been a big part of the market over the past five years and [their role is] increasing,» he said, citing Japan's Government Pension Investment Fund, which expressed interest in
growing real estate allocation.
Not exact matches
Yet that shift to increase
real estate allocations will not happen overnight and will likely be a gradual process with
allocations that will
grow over the next several years.
While some investors may take a wait - and - see approach to betting their money on U.S. commercial
real estate assets in the short term given the uncertainty surrounding U.S. economic policy under the new President Elect, «capital formation globally continues to
grow and increase
allocations to
real estate,» according to Byron Carlock,
real estate practice leader with consulting firm PwC, who is currently in London for an investment conference.
With capital
allocations to
real estate growing (JLL forecasts growth from $ 700 billion to over $ 1 trillion within a decade), pressure is
growing for
real estate to have similar transparency as other international asset classes.
Real estate is a large and
growing component of these institutions» investment strategy and asset
allocation.
The article builds on
growing market knowledge and provides a quantitative analysis to support reasonable
allocations of the
real estate component of various seniors housing properties.
That number is poised to
grow further because the majority of sovereign wealth funds — investors such as GIC — have yet to hit their target
allocations for
real estate, according to Preqin Ltd., an alternative - assets research firm.