Private equity firms were the big winners and made huge profits in the wake of the last major real estate downturn. This time around, they will need to find a new playbook. “Low economic growth and high interest rates is not a great recipe for real estate investment,” for buyers that use debt especially, MSCI Head of EMEA Real Estate Research Tom Leahy said. In Europe, private equity firms were net sellers for only the second time in the past four years, MSCI data showed. In the U.S., where rates rose sooner, these buyers turned net seller in the second quarter of the year, before becoming net buyers again in the third quarter. 
“You have to wonder whether some of these firms are sitting on the sidelines as they have issues financing deals,” Leahy added.After the 2008 collapse of Lehman Brothers, several factors fell into place for real estate private equity firms looking to make high returns. Banks…  Read the full story here. | 
