North America’s construction and real-estate industry saw a drop in overall deal activity during the second quarter of 2019, according to GlobalData.
Of the deal types, mergers and acquisitions had the most activity, representing 76%. Second place was venture financing, followed by private equity deals. The total value of the deals was $4.21 billion, but the combined value of the top five deals accounted for 90% of the total activity. The largest announced was Park Hotels and Resorts’ $2.7 billion acquisition of Chesapeake Lodging Trust.
In second place was $487 asset transaction with H.I.G. Realty Partners and in third place was FirstService’s $376.58 million acquisition of Global Restoration Holdings.
Globally, construction output growth will decline to 2.7% in 2019, the slowest period of growth in a decade, but GlobalData’s forecast sees the growth will increase to 3.2% in 2020 and then stabilize to 3.4% through 2023.
Danny Richards, Lead Economist at GlobalData: “Some major advanced economies have struggled to generate growth momentum, including the US, the UK and Australia. In China, where the authorities are stepping up investment in infrastructure to prevent a continued slowdown, growth will remain positive, contributing to a slight acceleration in growth in total output in the emerging markets.”