Gulf Property Exclusive
Dubai
The total value of the deals in construction and real estate sector in the United States declined 14.8 percent to US$3.83 billion (Dh14 billion) in August 2020, when compared with the last 12-month average, according to GlobalData, that tracks such deals worldwide.
The US construction industry is expected to contract by 6.5 percent in real terms in 2020, and 2.0 percent in 2021, according to a separate report by Research and Markets.
“With economic activity expected to contract by as much as 8 percent this year, and the surge of new COVID-19 cases in the southern and western parts of the US showing no signs of abating, the construction industry is anticipated to be severely hit this year,” the report said.
A total of 52 deals worth $3.83 billion were announced in August 2020, compared to the 12-month average of 61 deals, GlobalData said.
Mergers and Acquisitions (M&A) was the leading category in the month in terms of volume with 39 deals which accounted for 75 percent of all deals.
In second place was private equity with nine deals, followed by venture financing with four transactions, respectively accounting for 17.3 percent and 7.7 percent of overall deal activity in the country’s construction and real estate industry during the month.
In terms of value of deals, construction and real estate industry saw with total deals worth $3.79 billion being concluded in August, while private equity and venture financing deals totalled $22.6 million and $8.79 million, respectively.
The top five construction and real estate industry deals accounted for $3.8 billion or 99.4 percent of the overall value during August 2020, against the overall value of $3.83 billion recorded for the month.
The top construction and real estate industry deals of August 2020 includes Builders FirstSource’s $2.5 billion acquisition of BMC Stock; the $900 million acquisition of Jernigan Capital by NexPoint Advisors; LF Capital Acquisition’s $344 million acquisition of Landsea and the $45 million acquisition of Window Installation Specialists by Exchange Income.
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