Beyond the sectoral strategies covered in the above, the way capital is deployed will continue to adjust in a competitive and higher cost of capital environment. Not only will investors continue to participate throughout the capital stack as lending markets stabilize, but a broader set of strategies, both direct and indirect, will be explored.

The current challenging capital market environment and the focus on building long-term assets under management (AUM) has triggered a focus on new investment strategies: Partnerships with operators, whether it be through joint ventures, recapitalizations, platform acquisitions, or other structures, are particularly in focus.

Over the past five years, joint ventures have become a major component of the global real estate market, with between around 10 - 20% of all real estate deals involving some form of joint venture. Investors are increasingly directing their capital towards joint ventures, especially in sectors where access to deal flow is highly competitive. Joint ventures in the logistics and living sectors have grown meaningfully, allowing investors access to more deal flow, expertise, risk management, and scale, and this trend is expected to continue and intensify.