Nordic liquidity on the way

Interesting story in the FT about Nordic property funds getting back into the game.

Nordic pension funds enthusiastically embraced opportunities in indirect real estate all over the world in the years leading up to the crisis, but were faced with a backlash as the markets began to tumble. Between 2008 and 2009, some investors saw the value of their indirect property portfolios dropping by about a third.
“Investors have in some sense rethought why they were getting into property in the first place. They are going back to core property investments for the risk and returns people thought they were going to get and drifting towards lower leverage. Some want to avoid leverage completely,” says Russell Chaplin, chief investment officer for property at Aberdeen Asset Management

Not all of these stories have to come off 100% in the end for there to be an impact. The more we hear about funds and investors getting back into property, the greater the level of liquidity in the market. With lots of financing coming due this year, that can’t happen soon enough. Full article here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s