Scott Schaevitz, Co-Head of Americas Real Estate Investment Banking, Barclays

Scott Schaevitz is co-head of Americas real estate investment financial with Barclays. Before signing up with Barclays in 2008, he served as a Managing Director in the real estate financial investment banking teams at Lehman Brothers, Wachovia Securities as well as Prudential Securities. He began his career at E.F. Hutton & Co. Schaevitz got a B.A. from Tufts University and an MBA from New York University.

Looking back at 2014, were you shocked whatsoever by the total level of activity by REITs in the resources markets?

Resources elevates by REITs were at a healthy level, however below the quantity we saw in 2013. The purchase market was tough and several REITs just did not have an use for the resources they could have elevated in the equity markets.

Many REITs are trading above their NAVs as well as, as such, have a "eco-friendly light" to obtain. Some have problem approving current asset prices. Property values have been risen by a wall of capital competing for assets. Money has actually been can be found in from sovereign wealth funds, non-traded REITs and also exclusive equity funds. Purchasers are helped by a slew of CMBS and also annual report lenders. The wall of funding is pressing asset values to new heights in several property types.

What concerning IPOs, specifically, in 2014?

We saw a lower degree of IPO task in 2014 versus 2013. This scheduled, partly, to the strong "bid away:" existing public business or private customers were ready and also able to pay evaluations above what might be achieved in an IPO. From a totally financial point of view, it made feeling for some existing proprietors to market versus pursue an IPO.

Early in the year, IPO activity was focused on smaller issuers. Smaller IPOs encounter additional obstacles as they attempt to become relevant to institutional customers. Customers have just so much bandwidth and might be hesitant to invest the time to get up to speed up on a smaller firm with restricted float.

We really feel that solid administration groups with excellent track records and also strong development tales will certainly continue to have accessibility to the IPO market. Financiers feel REIT IPOs are a market that is functioning.

REIT IPO quantity might be tested by the proceeded strong "bid-away" we anticipate to see in 2015. Real estate buyers in the U.S. include funding resources that desire properties, as well as capital resources that want assets that include administration teams to help expand the company.

Are there any kind of particular real estate fields where you anticipate to see even more mergers and procurements than others?

There are certainly a few markets that have extra public business than a lot of financiers feel are necessary. Additional public-to-private activity will certainly be driven by REITs' interest in marketing off their reduced top quality assets. With a deep quote, even for B-quality properties, REITs can offer possessions that will have the result of updating their staying portfolios.

With reduced loaning expenses and also raised personal market real estate evaluations, go-private task might increase. The activity often tends to have less relationship to property kind and more connection to firm particular circumstances-- whether management or protestor driven.

Private-to-public task will certainly be driven by REITs that are trading over NAV on the one hand and also public, non-listed REITs and also exclusive profiles on the various other.