Issue 11 2019

Acquisition International - Issue 11 2019 41 Number and Aggregate Value (mil $) of Private Equity Deals Globally: 2006-2019 YTD (as at 29th October 2019) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q4 2019 72 2,576 Q3 2019 479 22,749 Q2 2019 609 35,756 Q1 2019 633 100,174 Q4 2018 847 31,222 Q3 2018 472 37,712 Q2 2018 514 36,117 Q1 2018 484 51,043 Q4 2017 503 49,611 Q3 2017 384 21,258 Q2 2017 440 51,742 Q1 2017 416 24,226 Q4 2016 410 23,520 Q3 2016 436 86,624 Q2 2016 403 32,705 Q1 2016 680 70,200 Q4 2015 649 89,706 Q3 2015 491 41,460 Q2 2015 497 38,910 Q1 2015 392 26,499 Q4 2014 427 19,525 Q3 2014 398 38,836 Q2 2014 352 20,993 Q3 2014 992 182,785 Q2 2014 1,008 119,739 World region (target) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Far East and Central Asia 213 191 279 223 237 248 43 Western Europe 193 193 179 161 151 130 19 North America 46 35 314 196 182 65 7 South and Central America 12 10 24 15 8 8 2 Middle East 3 4 3 3 0 5 1 Africa 8 1 9 6 4 7 0 Eastern Europe 28 20 20 19 16 11 0 Oceania 11 18 20 8 10 10 0 Number of Private Equity Deals by Region: 2006-2019 YTD (as at 29th October 2019) Bureau van Dijk The volume and aggregate value of mergers and acquisitions (M&A) deals targeting real estate companies worldwide declined in October 2019 as 381 deals worth a combined USD 8,982 million were announced, compared to September’s 488 at USD 26,562 million, according to Zephyr, the M&A database published by Bureau van Dijk. The last time value was so low for a month under review was in August 2018, when deals worth USD 8,772 million were announced. It is even longer since volume plumbed such depths; we have to go back as far as September 2017’s 337 deals to find a lower month in terms of deal numbers. However, this is not to say that there is not still an appetite for high- value dealmaking. In fact, October’s most valuable deal targeting the real estate sector is the industry’s 12th-largest deal of the entire year to date. That transaction saw US-headquartered INDURE Build-to- Core Fund secure a USD 1,346 million funding round from undisclosed investors and accounted for 15 per cent of total value in the month under review. Nevertheless, the largest deal of 2019 was announced in September and took the form of an acquisition as Blackstone Real Estate Partners IX signed on the dotted line to pick up the industrial real estate assets and industrial operating platform of Colony Capital for USD 5,900 million. The second-placed deal also took place last month and it too involved Blackstone as the private equity firm agreed to buy Dream Global Real Estate Investment Trust for USD 4,666 million. To sum up, October has been a quiet month for real estate M&A, but it is worth noting that the month has come on the heels of a fairly busy period; both Q2 and Q3 surpassed the corresponding periods of last year in terms of value. Nevertheless, it is worth noting that Q4 of 2018 was busier than both Q2 and Q3 and, as such, it will be interesting to see whether this trend is again replicated this year. Real Estate Number and Aggregate Value (mil $) of Private Equity Deals Globally by Target Sector: 2006-2019 YTD (as at 29th October 2019) Number and Aggregate Value (Mil USD) of Private Equity Deals Globally by Deal Type: 2006-2019 YTD (as at 29th October 2019) Deal type Number of deals Aggregate deal value (m $) Acquisition 7,352 936,101 Minority stake 13,792 533,688 Institutional buy-out 687 126,126 Share buy back 2 7,001 Management buy-out 132 1,205 Demerger 21 438 MBI / MBO 4 100 BvD sectors (target) Number of deals Aggregate deal value (mil $) Chemicals, Petroleum, Rubber & Plastic 20,789 1,543,586 Wholesale 1,267 54,730 Business Services 49 14,557 Agriculture, Horticulture & Livestock 4 10,787 Industrial, Electric & Electronic Machinery 25 10,341 Mining & Extraction 9 10,082 Retail 14 8,204 Transport, Freight & Storage 10 7,437 Utilities 8 7,202 Biotechnology and Life Sciences 13 7,149 Travel, Personal & Leisure 11 7,039 Construction 12 6,921 Property Services 9 6,862 Banking, Insurance & Financial Services 12 6,029 Wood, Furniture & Paper Manufacturing 7 4,983 Food & Tobacco Manufacturing 19 4,242 Leather, Stone, Clay & Glass products 6 717