Thirst for Property in the Private Market “Extraordinary”

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There have been clear success and failures in the real estate market during the pandemic but the general backdrop is good according to Vision Capital CEO Jeff Olin.

“Not withstanding the increase in interest rates, the spread between the capital yields in REITs and in investment grade bonds has been almost double the long-term trends,” Olin said. “And when you can make little or no money on bonds, the thirst in the private market for property is extraordinary.

“According to Citi, there is $345 billion of dry powder funded in Blackstone, in Brookfield, and in pension funds that are increasing their weights to real estate from five to 10% to 15% to 20%. Private equity funds that have been fully funded are looking to invest in property, and so that’s a very good backdrop for the public markets.”

To illustrate his point, Olin highlighted Vision’s participation with Blackstone on an investment in Tricon – focused predominantly on… CLICK for the complete article

You can also watch Jeff Olin’s 2021 World Outlook Financial Conference presentation HERE