Green Street



Real Estate Alert: M&A Volume Slowed in First Half; Citi Tops Advisor Ranking

According to Real Estate Alert: Mergers and acquisitions of real estate companies slowed in the first half, and market conditions are sending mixed signals about the prospects for the rest of the year.


"The biggest change is that debt capital is tighter, and REIT discounts have shrunk," said Andy McCulloch, head of real estate analytics at research shop Green Street Advisors. "In an overall sense, we still say that the odds of M&A [activity] is elevated, but conditions aren't quite as ripe as they were in the fourth quarter of last year."

Another headwind is uncertainty surrounding the upcoming elections and fallout from the U.K.'s vote to quit the European Union. "On the buyer side, anything that creates uncertainty like a Brexit or what Brexit may lead to down the road...makes everybody more cautious," McCulloch said. "You're less likely to stretch. People might not thing we're in an asset-value bubble, but they don't think asset values are cheap. So if you think it's already expensive and there's heightened uncertainty, you're going to be more selective."


To view the full article from Real Estate Alert, click here.