Institutional Real Estate Europe
September 1, 2014: Vol. 8, Number 8Buy For $195.00 Add to Cart
What's the alternative? The risk-tolerant and knowledge-rich are expected to reap the best returns from the new alternatives
Student accommodation, self-storage and even cemeteries — alternative real estate investment has changed dramatically over the years. As an increasing variety of so-called alternative real estate has become mainstream, yield-chasing investors have sought out far more esoteric — and risky — deals. What are the new alternatives?
The comfort zone: Are real estate investors in the right place?
Investors of all shapes and sizes, by definition, have assets and liabilities. They are doing what we all do — they are saving, putting money aside, for a reason, for use in the future. The timeframes for the liabilities will be different and variable across investor types, but all investors will have return and performance objectives designed to enable their assets to grow and meet their liabilities as they fall due, hopefully with a surplus building up over time.
Business rates revaluation: Supporting the recovery of UK secondary property
The business rates regime in the United Kingdom has faced increased opposition in recent years. The planned revaluation in 2017 is likely to provide considerable support to parts of the secondary property market, particularly retail, while reducing the relative appeal of certain prime assets and locations.
Restoring investor confidence: These are difficult times for Turkey
After the economically ordinary 1990s and the bank crash of 2001, the start of the reign of prime minister Erdogan in 2003 brought Turkey into a period of stable growth and low inflation. The growth and potential of Turkey, which has about 75 million inhabitants, seemed almost indefinite, until policy changes brought this ascent to an abrupt halt.
The rain in Spain ... Stays mainly in the plain
Since mid-2013, Spain has been enjoying a resurgence in investment activity from global investors. The weight of capital has started to push prices upward while economic fundamentals are about to bottom. The question is, are we seeing early signs of a recovery or is the commercial real estate market already beginning to look overpriced?
No tragedy: Real estate investors are just, well, different
The institutional real estate world is full of pronouncements and common wisdom. But for every person who states unequivocally that interest rates are on their way up, you’ll find another willing to bet his reputation — along with his fund’s resources — on interest rates remaining the same. One man’s truth is another man’s fiction.
Ireland: bursting out
Transaction activity has picked up in Ireland, as the country continues on a path for recovery following the global financial and euro zone sovereign debt crises. Investors have been finding attractive deals across property types, as well as resolving distressed situations.
Favourable financing environment sees growth in convertible bond issuance
Transaction volume for convertible bonds issued by listed European property companies rose to just under €1.5 billion in H1 2014, more than double the same period last year.
Fundraising round-up: a midsummer night's dream
Investors poured capital into European property funds during the summer, with a number of fund closings during June and July.
Loan sales in Europe near
European commercial real estate loan and REO sales totalled €40.9 billion in the first half of 2014, according to Cushman & Wakefield, as loan sales transaction volume begins to accelerate in the region.
Nothing alternative about alternative assets, they do the trick
The latest survey of assets managed by alternative investment managers around the world from Towers Watson, published in conjunction with the Financial Times, shows that global alternative AUM reached $5.7 trillion (€4.2 trillion) last year.
Market Focus: Wroclaw, Poland
While Warsaw remains the most popular destination for investor activity, Wrocław’s widening transport infrastructure and ongoing development of prime space (particularly office) is attracting attention from both domestic and foreign investors.