Are people in acquisitions still buying assets?
Was wondering if any other acquisition shops are still actively acquiring assets? My firm has stopped buying for 2 months / looking to retrade on deals in process and I'm pretty much out of work at this point. Would love to see if this is just shop dependent
On the lending side, but I'm finding that discretionary funds/JV partnerships/ private capital are still buying, but syndicators are pretty much stuck on the sidelines.
With where pricing & interest rates are at, cash-on-cash returns are not nearly attractive enough to entice an LP to hop into the next deal. Good luck brother.
Analyst at a Multifamily Syndicator. Many of our Co-GP partners are officially pencils down until the beginning of next year. I'm still looking at deals, but nothing makes enough sense to pitch to LPs. It's getting difficult to keep finding things to do during the day... lol.
Can I DM you?
Sure
We’re finding some stuff to buy which groups lower on the risk spectrum usually would take down. We’re getting good pricing and ample opportunity to retrade. Biggest issue is finding lenders who are still active, folks are taking the volatile markets and summer break combo to totally shut off until markets become a bit more clear.
We're based in London and focus on Pan-European and U.K. so could be slightly different view.
We are actively sourcing, bidding and closing transactions across those markets.
Main focus of the group is residential, healthcare and social infrastructure assets (opco/propco)
UK market - we have a pretty full pipeline and are still closing deals. However, we are facing pushback from the LP on timing of the pipeline. While it hasn't explicitly been mentioned yet, I am predicting pressure to retrade on a few deals based on the discussions we're currently having with the LP.
Another issue we're facing, unsure if others are, is our favoured lender has just let us know they will be taking no further exposure for the foreseeable.
So while things are ok right now it does seem that both equity and debt are starting to pullback in a major way.
People are still buying, but they need pref/mezz now.
Toronto market - we're still underwriting a ton but prices are just insane now. Haven't bought anything in 2022. Can't imagine we buy anything else for the remainder of the year, especially with the 1% rate hike we were hit with yesterday.
How's the Toronto market in terms of the job market? Still hot or does it seem like its dying down now?
From what I can tell, it still seems really active. Not as hot as earlier in the year, but still really good. I know Avison Young is currently trying to build out a RE consulting team ( a buddy was hired there last week and there trying to hire another analyst). A few of the REITs have postings out for analysts as well. Private groups may have slowed down a little bit, but if you search around you'll find postings there too.
Still underwriting everything but haven't found anything worth bringing to our investment committee.
just opened escrow on two projects this week!
stoked to be able to continue doing deals
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