Tuesday, 12 June 2018

Real estate funds, again

Okay, okay ... / Yeah, again. We had one last month, from Scope. 'One what, boss?' PR email, Voice. They want to talk about real estate funds, again. 'Oh.' I don't mind, man. Apparently, these funds are driving significant change in investment activity. 'That's nice.' You don't sound interested ... all that much. 'I prefer the old days, boss.' Eh? 'You know, when you mixed it up. Those days when you went into the desert, uh, astral and physical, and, well ... reported back to your readers on all the amazing stuff you saw.' Ha! Yeah, yeah. Those days are over, man. And now that we have the conceptual shit, spinning a-ROUND ... we don't need no desert. 'Okay.' Stop living in the past! Let's make progress, son! 'All right.' Christ! / Anyway ...

Open-ended retail real estate funds increased their investments by 50% between 2016 and 2017. Germany replaced the US as the most popular investment destination, while the average price paid for properties went up by a quarter.

High cash inflows and ensuing efforts to prevent excess liquidity build-up drove the 19 German open-ended retail real estate funds evaluated by Scope to increase their investment volumes by 50% between 2016 and 2017 to a total value of EUR 9.2bn across 66 commercial properties and 324 residential properties.

I can't concentrate this morning. 'Or any morning.' Yes. No. Who cares?!

Even though many funds imposed limitations on new capital, net inflows were still in the region of EUR 6.7bn. Fund managers had to invest to prevent returns being diluted. To avoid low returns, many fund managers also shifted towards acquisitions outside of the traditional core office segment, such as project development, locations outside city centres and hotel properties.

I just ...

Higher EUR/USD hedging costs made US investments less attractive for euro-based investors, hence Germany and the UK overtook the US as the most popular destinations. Germany accounted for a quarter of all investments in 2017 (EUR 2.3bn); Great Britain followed in second place with EUR 1.7bn or 18%. Some funds exploited recent Brexit-inspired price corrections in the London real estate market to acquire property.

That's enough, actually. / I'm not sure I want to write about finance any more. 'You miss the desert, don't you?' I don't miss the fucking desert! I'll be working on a conceptual later, No. 618. Deal with it! 'Don't get me wrong, boss. I like all the spinning a-ROUND. But I loved the desert, man.' Shut up!


Okay, okay. Anything else? Uh. Those audiobooks? Right. I've decided, man. There are elements of the Be Obsessed book I don't agree with, mainly the team stuff, uh, oh ... and I'm only going to listen to the 10X one occasionally from now on. I haven't gone off Cardone, baby, no, but I don't want his books mixed up in my head with the Musk/Vance thing. You dig? 'Me dig? Is that final, boss?' Yes, it is, Voice, reader(s). So ... once every couple of months I'll listen to the 10X audiobook - in one go, like. I mean, it's only seven and a half hours long. Otherwise, I'm just going to get confused. 'Big time.' Because Elon is the multi-billionaire, right? And he's the guy with outlandish ambitions, wanting to go to Mars and shit with one hundred people in a cockamamie rocket. [Why didn't NASA think of that?] 'Crazy!' Yeah, maybe, Voice. But cool, man. Very cool. Elon is doing stuff ... that should be impossible. That's what I've got to do. I'm talking about becoming the greatest ever songwriter ... within the next ten years, man, and recording seven or eight classic albums in that time - the greatest albums, too, and becoming a BIG STAR, and, and, and ... all as a middle-aged guy when most rock stars of my age are slowing down or even stopping altogether. So ... fuck it! 'Mikey, it's impossible!' Ha! Yeah! And I love it! So, conversation over. Debate over. I've decided! 'Yippee!' Let's do this! 'I'm with you, Mikey!' Thanks, man. Thanks for your support. You, too, reader(s).