Courtesy of EC Harris

The key finding of this year’s report into global construction disputes is that disputes are taking longer to resolve. Overall, they are now taking over a year to resolve, with the average length of time for a dispute to last in 2012 being 12.8 months, compared to 10.6 months in 2011. This continues the trends for longer disputes - in 2010 disputes were taking 9.1 months to resolve. Whilst dispute durations are getting longer, the value of disputes was broadly stable in 2012. The average value of global construction disputes in 2012 was US$31.7 million, down slightly from US$32.2 million in 2011.

Courtesy of Aberdeen Asset Management PLC

Global or local?

Property has long been considered a mainstream asset class for institutional investors. However, for most there has been a strong home-bias, with high exposure to domestic markets. Increasingly, we believe investors are looking toward global property markets as a way to improve potential risk-adjusted returns and divof their property portfolio. The step from domestic to global property investment, however,  is not a trivial one and in some cases it may not be an appropriate solution. We believe the following three steps provide some insights into global property markets and also a framework for investors to understand better whether it might be a suitable approach for them.

Courtesy of CBRE Clarion Securities

Investment in infrastructure is among the world’s leading growth drivers and is a strategic priority for countries worldwide. Listed infrastructure companies are playing a dominant role in the accelerating growth of the infrastructure asset class globally. More than $50 trillion is likely needed to fund global infrastructure projects in the coming years, essentially making infrastructure among the world’s largest growth industries.

Courtesy of Cohen and Steers

Defining the Objectives and Characteristics of a Real Assets Framework 
In our view, the design of a real assets investment strategy is not just about inflation protection; it’s also about delivering attractive long-term returns with less volatility than found in most individual real asset classes. When inflation is rising, the strategy’s return potential should rise as well. When inflation is easing, its diversified return profile should be less volatile than those of individual real asset classes. And finally, the strategy should offer diversification(1) benefits for portfolios of stocks and bonds. As we applied these objectives to the design of a real assets framework, we identified five central themes.

Courtesy of Cohen & Steers

Real estate securities combine the benefits of owning commercial real estate with the features of publicly traded stocks. This unique combination results in a set of investment characteristics that we believe make a compelling case for a long-term strategic allocation to the asset class.

Courtesy of CBRE Capital Markets

Commercial real estate lending markets finished 2012 on a high note, with a flurry of deals closing during the fourth quarter. According to CBRE's analysis of loan closings, total lending volume increased by 18% in Q4 2012 over year-earlier levels. In addition to strong growth in multifamily lending from the agencies (up 36% from 2011 levels), banks and CMBS lenders contributed disproportionately to the overall gains.

Courtesy of Urban Land Institute 

Optimism has returned to Europe’s real estate industry. Sentiment among industry leaders about the prospects for their businesses is more positive than at any time since 2008, despite the uncertain macroeconomic outlook. Equity for investment in prime commercial real estate is expected to increase, but bank debt is predicted to contract further. Emerging Trends Europe’s respondents are adjusting to this “new normal.” Those with access to capital are focusing on opportunities in areas they know best. They recognize that traditional stock selection and micro asset management skills are crucial to generating returns. The environment offers very little certainty and definitely no quick wins. Europe’s real estate markets continue to be challenging, but all sectors offer new investment potential, too.

Courtesy of Urban Land Institute 

Investor sentiment across many markets in Asia has grown increasingly uncertain toward the end of 2012, with concern over fading global economic prospects tempered by ongoing strength in asset pricing and persistently compressed yields. The lack of conviction has been highlighted by the divergent approaches of foreign and local investors to property pricing, with Asian buyers often willing to pay up for properties at rates foreigners find prohibitive.

Courtesy of KPMG LLP

KPMG and Mergers & Acquisitions magazine conducted a survey of over 300 M&A professionals at U.S. corporations, PE firms, and investment funds immediately after the U.S. election to gain a better understanding of the current M&A market. This publication analyzes the findings of the survey and provides insights into the outlook for M&A in 2013.

For additional news and information, please access KMPG LLP's Web site on the Internet at http://www.us.kpmg.com

Courtesy of Family Offices Group

This report is a guide to assist single and multi-family offices in identifying top fund managers.

Courtesy of Family Offices Group 

This report is a primer on raising capital from family offices. 

Courtesy of Family Offices Group

The Singapore Family Offices report is  a short report on what really makes Singapore such a unique location for family office and fund management activities. 

Courtesy of Cassidy Turley

The phrase “fiscal cliff” was coined by Ben Bernanke, Chairmen of the Federal Reserve, in describing the impact of budget sequestration and tax increases on the U.S. economy, effectively causing a new recession to occur. The Congressional Budget Offi ce (CBO) agrees. They estimate that the new policies will cause real GDP to contract by 0.3% in 2013. However, the CBO acknowledges the possibility of avoiding the cliff if policymakers adopt alternative solutions. In this paper, we review the various scenarios and evaluate the impact each scenario would likely have on the commercial real estate (CRE) markets.

Courtesy of IPD

IPD Announces 3Q, 2012 Results of the Giliberto-Levy Commercial Mortgage Performance Index.  The Index, which tracks private market loans held in investor portfolios, produced a 1.15% total return in 3Q, 2012.

Courtesy of J.P. Morgan Asset Management – Global Real Assets

The past few years have certainly been a testing time for all investors active in the European real estate market. Sovereigns have been on the brink of collapse, economies show little sign of anything remotely approaching a sustained recovery, and the banking system will remain fragile for some considerable time yet. This period of unprecedented volatility has, at times, challenged the very core of the European experiment. Twenty something crisis meetings have come and gone and each has done little to calm the nerves of fractious investors, much less engender any feeling of confidence.

Courtesty of Landmark Partners

The market for real estate secondary transactions has recorded a fourth straight year of record transaction volume, with $2.6 billion of activity during 2012, based on Landmark Partners’ annual global tally.  A tenured investor in the real estate secondary market, Landmark continues to aggregate this data through a variety of channels including the firm’s own transaction experience as well as discussions with other market participants.   

Courtesy of IPD

U.S. investment returns exhibit consistent growth.  The IPD U.S. Quarterly Property Index, which includes tax-exempt and taxable domestic and foreign investors invested in U.S. private equity commercial real estate, produced a total return of 2.5% in 3Q 2012, consisting of 1.4% income and 1.2% appreciation.

Courtesy of Cohen and Steers

The fundamental case for infrastructure is grounded in the return potential and inherent characteristics of the asset class—long-lived assets in businesses with high barriers to entry found in monopolistic industries, typically supported by the resilient demand for essential services. The investment opportunities are global, driven by decades of infrastructure neglect in developed economies and the need to build out large scale infrastructure networks in emerging markets. 

Courtesy of CalPERS 

On September 12, 2011, the Investment Committee of the California Public Employees' Retirement System ("CalPERS") Board of Administration ("Investment Committee") earmarked up to $800 million for investment in California infrastructure over a three-year time period. The primary goal of this initiative is to make investments in essential infrastructure assets that meet the risk-return objectives of CalPERS Infrastructure Program ("the Program"), while also potentially benefiting local economic development and essential community services across the state. The Investment Committee instructed staff to develop a plan for outreach to state and local governments to explore the role CalPERS and other pension systems can play in facilitating infrastructure investment in California ("the Outreach Effort").

Courtesy of Macfarlan Capital Partners, L.P.

Recent quarters have shown measured improvement in the United States economy. The current situation, however, contains uncertainty and investors must proceed with what leading economists refer to as “tempered optimism.”1 Allowing this mindset to guide decision‐making creates a “flight to quality,” leading investors to pursue expensive Class A assets and core assets (such as trophy office towers and multi‐family complexes in gateway markets New York City, Boston, Washington D.C., San Francisco and Los Angeles) purchased on historically low cap rates. These premium priced trophy assets attract investors who are looking to allocate equity to perceived stable products, due to an appetite for current yield driven by the record low U.S Treasury bond rates.

Courtesy of Knight Frank LLP

With the ambitious target of implementing the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) by 2015, the opportunities for corporate occupiers and real estate investors across an enlarged single market of some 600 million people look promising. Nicholas Holt examines the background, the challenges and the possible impacts. Nearly five years on from the signing of the AEC blueprint in November 2007, the region is now only three years away from the target of fully implementing measures to create a single market with free movement of goods, services, foreign direct investment and skilled labour.

Courtesy of KPMG LLP

KPMG LLP, the audit, tax and advisory firm, surveyed top-level executives in the commercial real estate industry during the second quarter of 2012.  Participants were asked about business conditions in their sector, the most significant revenue growth areas, and factors that would impede or support recovery in real estate. These responses were compared to the findings of a similar survey conducted among commercial real estate executives in the second quarter of 2011. For additional news and information, please access KPMG LLP's Web site

Courtesy of Real Estate Foresight

This report on Chinese real estate markets is designed to serve as a reference chart book to help investors systematically review the key data and indicators illuminating the latest changes, trends and themes in the markets. The information is organized in a way that brings together macro- economic, capital markets and sector specific direct market perspectives 

Courtesy of Pacific Star

Global economic activity expanded at a measured pace in the first half of 2012. Leading indicators point to a continued deceleration for most major economies. The private sector recovery remains modest in many countries amidst weak sentiment. As the unresolved Eurozone debt crisis looms over the global economy, the path ahead is fraught with uncertainties and risks. However, not all is gloom and doom. While economic prospects for the U.S. and Europe remain muted, Asia will continue to stand out given resilient domestic demand and greater policy options.