Raising capital from corporate real estate

This report provides a breakdown of disposals into asset types and geographies, as well as a high-level review of the context for this activity. Whilst it surveys disposals over the past decade, it is published at a time of unprecedented global disruption and widespread uncertainty.

The ongoing global Covid-19 crisis presents enterprisewide challenges for all businesses, regardless of their size, sector or geography. At a time when debt markets and other sources of capital are significantly constrained, businesses are increasingly looking at the different routes available to generate liquidity from their properties. This report demonstrates that disposals remain an attractive route to releasing capital – not only because they can allow for considerable operational flexibility, but also because investors are becoming more aligned with the needs of corporates.

We continue to see a growing appetite from investors in specialised corporate and owner-occupied properties, such as research buildings, healthcare facilities and manufacturing sites, which is opening further routes to monetisation. The Covid-19 crisis may lead to more of these kinds of facilities coming to the market. We also expect to see companies that are self-delivering HQs and other facilities to look to ease their financial commitments by collaborating with investors via forward funding sales.