Friday Letter Ten stories that defined a year

Happy New Year, PERE reader! The year 2007 was the best of times as well as the worst of times. But really, even the worst of 2007 was seen by some private equity real estate market participants as a mere reversion to the mean. After all, compared against the dizzying first half of 2007, almost any real estate market looks disappointing. 

The year was one of superlatives. The deals and funds had never been bigger; the GPs had never travelled further in search of a deal; the public and regulators had never taken a keener interest in alternative investments. The credit crunch, by contrast, had an effect on the market that is nowhere near the biggest real estate financial fiasco of all time – or at least it isn’t yet.

The year 2007 will certainly produce some vivid memories for those in the private equity real estate market. PERE magazine was there to chronicle all the major trends and their tributaries. The editorial team of PERE thought it would be an interesting exercise to agree on ten stories that had particular resonance. Not all of these are screaming headlines – some are less obvious trends that we believe will gather momentum in the coming years, and are therefore worth paying special attention to now. We hope you enjoy our selection, even if you don’t entirely agree with our mix.

Over the next week you will find PERE’s top ten stories of 2007, starting with this one and this one. These will no doubt produce some pleasant as well as troubling memories. A complete version of these trends can be found in the 2007 PERE Yearbook, available to magazine subscribers, and out now.

Top Trends of 2007, according to the PERE editorial team:

1) REIT buyouts enter a golden age

2) Founders monetize their franchises

3) Western firms go global

4) Sovereign wealth funds became major forces in global real estate investing

5) Healthcare real estate shows rude health

6) Private equity real estate firms around the world face regulatory danger

7) Development companies are the new real estate investment

8) Hotels are happening

9) London hits a peak

10) Credit markets derail