Issue 3 2019

62 Acquisition International - Issue 3 2019 The volume and value of mergers and acquisitions targeting the global real estate industry declined in February to the lowest-recorded value of the last 12 months under review as 407 deals worth an aggregate USD 6,926 million were signed off, according to Zephyr, the M&A database published by Bureau van Dijk. ebruary was down 40 per cent by volume and 21 per cent by value from 680 deals worth USD 8,788 million in January, representing the second-consecutive decline in real estate deals globally (December: 1,114 deals worth USD 15,871 million). In a 12-month comparison, volume decreased 28 per cent, against a 55 per cent decline by value from 568 deals worth USD 15,532 million in February 2018. In the second half of 2018, volume increased 6 per cent, while value declined 5 per cent to 3,434 deals worth a combined USD 96,088 million in H2 2018, from 3,234 deals worth USD 100,726 million in H1 2018. Interestingly, value in H2 2018 also declined for the second-consecutive period (H2 2017: USD 113,594 million). The overall decline in 2019 to date can be attributed to the lack of a very large deal being signed off as no transaction has exceeded USD 1,000 million so far this year. The largest deal involves Yakir Gabay decreasing its stake in Luxembourg-based commercial and residential property investment and management services provider Aroundtown from 44 per cent to 34 per cent for USD 913 million. This was followed by NH Investment & Securities and ARA Korea Global Investment Private Equity Real Estate Trust No.1 acquiring South Korea-based building leasing services provider Seoul Square for USD 890 million. Other targets have included German residential property group Deutsche Wohnen, UK buildings and infrastructure company Interserve and US-based healthcare-related real estate firm MedEquitites Realty Trust. North America is currently topping the world region rankings by volume and value in 2019, having been targeted in 771 deals worth USD 5,481 million in the year to date, surprising given the region was only targeted in four of the top 20 real estate deals by value. Western Europe, which featured in nine of the top 20, was second on both fronts, with 133 deals worth USD 5,458 million, followed by the Far East and Central Asia, with 111 deals worth USD 3,757 million. In conclusion, both the volume and value of deals targeting companies in the real estate industry in 2019 has been disappointing when compared to the previous 12 months. This can largely be attributed to the lack of a very large deal. However, as we are only two months into the year, there is plenty of time for improvement and, as we have previously seen, a small number of sizeable investments in the sector could change the outcome. Company: Bureau van Dijk E-Mail: [email protected] Web: www.bvdinfo.com Real Estate F ...as we are only two months into the year, there is plenty of time for improvement and, as we have previously seen, a small number of sizeable investments in the sector could change the outcome.