Europe’s construction & real estate industry sees a drop of 36.8% in deal activity in Q2 2020

27 July 2020 (Last Updated July 27th, 2020 12:16)
Europe’s construction & real estate industry sees a drop of 36.8% in deal activity in Q2 2020

Europe's construction & real estate industry saw a drop of 36.8% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 134 deals worth $6.87bn were announced for the region during Q2 2020, against the last four-quarter average of 212 deals.

Of all the deal types, M&A saw most activity in Q2 2020 with 85, representing a 63.4% share for the region.

In second place was private equity with 29 deals, followed by venture financing deals with 20 transactions, respectively capturing a 21.6% and 14.9% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in Europe's construction & real estate industry with $3.97bn, while private equity and venture financing deals totalled $2.87bn and $31.01m, respectively.

Europe construction & real estate industry deals in Q2 2020: Top deals

The top five construction & real estate deals accounted for 81% of the overall value during Q2 2020.

The combined value of the top five construction & real estate deals stood at $5.56bn, against the overall value of $6.87bn recorded for the quarter.

The top five construction & real estate industry deals of Q2 2020 tracked by GlobalData were:

1) Optimum Ventures Private Equity Fund's $2.6bn private equity deal with Globe Trade Centre

2) The $942.29m asset transaction with Veidekke by Fredensborg Bolig, Fredensborg Eiendomselskap, Norwegian Property and Union Real Estate Fund III Holding

3) Top Family Group's $908.15m acquisition of Gold Flair

4) The $567.64m acquisition of United Progress Group by Yield Smart

5) Capital & Counties Properties’ acquisition of Shaftesbury for $537.64m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term 'acquisition' refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.