Blackstone’s global property boss and local office king Darren Steinberg argue that while valuations are under pressure, strong cash flow can create value.
Inside the investment giant, which recently hit the magic mark of
McCarthy says that while Blackstone did not predict the pandemic, it has been thinking for several years about how value is created in the property class, which always boils down to two things: higher valuations and/or better cash flows.Advertisement And cash is why it is betting big on sectors such as student accommodation and build-to-rent family housing, where demand is booming and supply has been constrained.
Clearly, that is not going to be painless, although Andrew McDonald, the global president of chief operating officer at CushmanWakefield, says this shows how well Australia is placed, arguing valuation falls in the US are likely to be much bigger, with even top-tier office properties potentially falling by as much as 25 per cent.But like McCarthy, Steinberg says these valuations falls are only part of the story of creating value in the property.
But Fallman says capital markets do remain disrupted in the property sector, and are likely to remain so for a while yet, with the lack of liquidity is weighing heavily on deal volumes.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Neighbours: A New Chapter review – fans will be left shouting at their screensThe Ramsay Street reboot reunites Susan and Karl, Paul Robinson, Toadie and more, but the opening episodes are disconcerting – full of surreal moments, bizarre twists and (why oh why?) Mischa Barton
Read more »
Jones questions why Tahs got rid of Donaldson as youngster equals Burke markBen Donaldson’s 25 point-haul in Australia’s Rugby World Cup opener was the highest tally for the Wallabies since Bernard Foley tore England apart in 2015.
Read more »
‘We’ve been constantly sick’: Why we can’t kick the ‘yo-yo flu’If you’ve been sick on and off this year, you might be a victim of the “yo-yo flu”. Here’s what it is, and why you have it.
Read more »
‘We’ve been constantly sick’: Why we can’t kick the ‘yo-yo flu’If you’ve been sick on and off this year, you might be a victim of the “yo-yo flu”. Here’s what it is, and why you have it.
Read more »
Why the Socceroos will struggle to walk for a week after Mexican stand-offThe Socceroos endured a tough 2-2 draw on an artificial surface at AT&T Stadium in Texas - and coach Graham Arnold reckons no international team should have to suffer through such conditions again.
Read more »