Capital Markets

Cloud Computing, AI, and 5G Accelerate Growth of Data Center Development and Investment Around the World

Data Centers, once an afterthought for global enterprises, are now a cornerstone of the information economy, and well over $100 billion has poured into the asset class over the past decade, according to Cushman & Wakefield’s Global Data Center Market Comparison.

The Global Market Comparison is the first data center report of its kind, openly discussing and ranking top markets for site selection and investment. This study reveals the thought process that underpins all data center work on behalf of our clients at Cushman & Wakefield, providing a rigorous and analytical approach for maximum value.

This study evaluated 1,189 data centers around the world, utilizing a unique weighted methodology to rank 48 global markets and arrive at our Overall Top Ten External Link markets.

Market turnaround: Recovery could deliver 50% uplift in global investment in 2021

Colliers anticipates a 50% surge in investment activity in the 2nd half of 2021 as global real estate markets rebound

With investors sitting on substantial amounts of dry powder and looking to make up for lost ground, Colliers expects total investment activity to increase by up to 50% in 2021. Our Global Investor survey results highlight that 98% of investors across all regions aim to expand their portfolios this year, with around 60% looking to expand by more than 10%, including 23% who want to expand by 20% or more.

Acquisitions to pick up pace in Q2 as market challenges ease

The roll out of COVID-19 vaccines will have a very positive impact on markets and global geo-political stability, courtesy of a Brexit trade deal and a U.S. election result, provide much needed certainty. These factors will help drive market growth in 2021. Although a large proportion of investors are looking to get out of the blocks early and identify acquisitions in Q1, Colliers experts believe the rebound in activity will gain strength from Q2 onwards due to lingering uncertainty over travel in the first quarter.

Tier-1 city offices remain the asset of choice

Reports of the ‘death of the office’ appear premature, with offices remaining the primary asset target globally. The scale and liquidity of the office sector in major commercial hubs like New York, London and Sydney allows investors to readily transact, supporting core, core-plus and value-add strategies. Re-positioning office assets to meet health, sustainability and technical benchmarks is a clear investor priority, delivering value for the long term.

Despite the slowdown in real estate markets accelerating across most of the world into the second quarter of the year, acquisition trends in two key global cities, both in China, have turned positive. Global volumes started to wane around March this year, but the weakness in Asia Pacific had already been apparent for some time, as all of the region’s top 10 metros suffered double-digit declines in the first quarter. In contrast, more than half of the key metros in Europe and the U.S. recorded an increase in transaction activity, as economic shutdowns and travel restrictions were implemented later in the quarter.

The year to 31 December 2018 was characterised by a record level of overall activity of NZ$1,698.9m, an increase of $709.3m from 2017 ($989.6m) and significantly above the average of $870.2m since the first survey in 2003.

Mid-market investment activity continued to be strong in 2018 resulting in $245.0m in investments, albeit down from a high of $333.7m recorded in 2017. Divestment activity with disclosed deal values has increased to $100.8m in 2018 from $62.4m recorded in 2017.

Meanwhile, 2018 was a record year for VC activity. Investments have increased to $269.7m, with divestments decreasing in the period. Buy-out activity has continued, but at a lower level than the 2016 peak, with $579.0m of investments and $503.4 divestment activity

The EY Global Private Equity Divestment Study focuses on how PE should approach their exit strategies in a resilient yet volatile marketplace. The 2019 report is based on 100 interviews with global private equity executives. The survey was conducted between September and November 2018 by Acuris.

In the past 12 months, we have seen…

The EY Global Private Equity Divestment Study focuses on how PE should approach their exit strategies in a resilient yet volatile marketplace. The 2019 report is based on 100 interviews with global private equity executives. The survey was conducted between September and November 2018 by Acuris.

In the past 12 months, we have seen attractive valuations and competition for assets as private equity (PE) firms divest portfolio companies. After an extended period of elevated dealmaking, PE exits leveled off in 2018. However, by historical standards, exit activity remains high and many firms anticipate this strong pace to continue in 2019.

This full year edition of the New Zealand Private Equity and Venture Capital Monitor consolidates the findings from previous surveys and provides a more detailed review of 2018 including commentary on the industry from the New Zealand Private Equity & Venture Capital Association’s (NZVCA) Chair.
 

“Increasing optimism bodes well for 2019 to continue the strong growth.” ~ Brad Wheeler Partner, EY

The appetite for alternative investments among Japan-based institutional investors has become the subject of much conversation. Recent economic developments in Japan have pushed many institutions to expand their horizons in the search for yield, and now two-thirds of the country’s institutional investor base invests in at least one alternative asset class.

Technology is changing the way commerce is conducted globally and every sector, from manufacturing to services, is gradually experiencing the impact in multiple ways. Real estate is not immune to this and is already beginning to experience the dynamism that technology brings to the core of how businesses are run.

In this quarter’s edition of Venture Pulse, we look at these and a number of other global and regional trends, including:

• The evolution of blockchain and its growing value across industries
• The strength and diversity of Europe’s VC market
• The rise of digital banks, including their global expansion plans
• The increasing importance of emerging economies to VC inve