Institutional Real Estate Europe
June 1, 2012: Vol. 6, Number 6Buy For $150.00 Add to Cart
Who Are the Leaders?: These Are Uncertain and Volatile Times, but Some Real Estate Players Are Showing How to Get Ahead
Debt. Deficit. Austerity. Unemployment. Inflation. For what seems longer than just the past few months, the old continent has been struggling with these demons. Investors are still eager to find new opportunities despite these threats. The real estate sector can be an attractive option, because it’s seen to be far less risky than stocks and shares and offers better returns than the obligations of bonds. Investors are hence still interested in real estate prospects in the “golden triangle”: France, Germany and the United Kingdom. Specifically, investors are on the lookout for prime office assets in London, Paris, Munich, Frankfurt and Berlin. But other investors have become more adventurous and are seeking returns from different types of assets and markets.
The New World Will Be Different: Opportunities Are Emerging despite Continuing Concern on Europe
The current crisis in the euro zone is principally the result of a systemic failure in the region’s monetary construction. Long-held fears that currency union without political union is unworkable have largely proved correct. However, we maintain the view that the euro zone will not break apart, and that all current members will continue using the currency.
Still All to Pay For: New Sources of Commercial Real Estate Debt Are Starting to Emerge, but the Size of the Funding Gap Remains Intimidating
The financing landscape for European commercial real estate is undergoing a fundamental change. The first step of the change has already occurred, with a number of high-volume lenders that were previously active in the property market withdrawing, according to Cushman & Wakefield’s latest European Real Estate Lending Survey.
A Conversation with Borja Sierra
As deal facilitators, brokers and consultants are at the heart of the real estate investment business. This business is local and global. Local, because on-the-ground market knowledge forms a key component of a deal’s structure; global, because there is an army of expert investors out there seeking real estate investments that meet their requirements, whether diversification, risk-adjusted returns, stable income or — ideally — a combination of the three. Editor Richard Fleming spoke recently with Borja Sierra, CEO, continental Europe, at Savills, based in London, about real estate markets across Europe; the pressures and uncertainties caused by fiscal austerity, rising unemployment and the continuing rumblings of the euro zone sovereign debt crisis; the risks inherent in the apparent investor concentration on core and prime in the principal markets; and Europe’s place in the real estate investment world.
Deka Invests in London and Amsterdam
Deka Immobilien GmbH has been actively investing across Europe, including two major acquisitions in London.
Invesco Buys London Property on Behalf of German Fund
Invesco Real Estate (IRE) has acquired a London office property on behalf of the iii-BVK Europa-Immobilien-Spezialfonds, an institutional real estate fund of Bayerische Versorgungskammer (BVK), which IRE has managed since 2000.
ING Real Estate Development Sells in Warsaw, Brussels
ING Real Estate Development, part of ING Group, has sold its shares in the holding company that owns 77 percent of Zlote Tarasy, a mixed-use property development in Warsaw, reducing its exposure by €475 million.
INREV Publishes White Paper on SDDS
INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, has published a white paper on the Standard Data Delivery Sheet (SDDS), an initiative to improve communication between investors and fund managers.
Investors in Non-Listed Real Estate Funds Look to Asia
Non-listed Asian property funds will receive a greater increase in allocations from investors than non-listed European property funds, according to a comparison of the two markets carried out by INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, and its sister organisation, ANREV, the Asian Association for Investors in Non-Listed Real Estate Vehicles.
- Klepierre Opens Retail Space in Paris
Land Securities Sells UK Asset
Land Securities has agreed to sell the 1.3-hectare Arundel Great Court site in London to Waterway PCP Properties Ltd for a headline price of £234 million (€288 million).
Madison Buys Stake in Frankfurt Office Tower
The Morgan Stanley P2 Value Fund is selling its 56.95 percent stake in the Trianon Office Tower in Frankfurt to Madison International Realty, a New York City–based investment company, and its German subsidiary, Madison Real Estate.
New Developments Springing Up Around UK
Rockspring Property Investment Managers has been busy developing new sustainable office buildings around the United Kingdom with multiple joint venture partners.
Prologis Sells in Germany and Poland
Prologis, a San Francisco–based industrial REIT, recently closed on the sale of two large logistics portfolios.
Queensgate Closes New Real Estate Fund
Queensgate Investments LLP has launched a new fund to invest in long income assets, hotels and special situation trades in the United Kingdom and continental Europe.
Real IS Launches Eighth Australian Fund
Munich-based Real IS has launched Bayernfonds Australien 8, a single-property investment fund.
- Shopping Centre Opens in Czech Republic
- Union Investment Transacts in Germany
Well-Intended Swap Contracts Prove Detrimental Instead
Two decades ago, interest rates were up and real estate loan borrowers were failing to pay banks their dues
WELPUT Sells West End Property
The West End of London Property Unit Trust (WELPUT), managed by Schroders and advised by Grafton Advisors, has sold the freehold interest in Stratton House to a private European investor for £166 million (€204 million).