King Street Capital Management’s Paul Brennan on finding opportunity in Europe’s repricing
by Andrea Zander
After several years of repricing, European real estate is no longer defined by historical benchmarks or headline cap rates, but by whether assets can sustain their capital structures and generate durable cash flow in a higher-rate, lower-growth environment. Price dispersion across sectors and markets is at or near record levels, creating a landscape where broad averages offer little insight and outcomes are increasingly determined at the asset level. In an IREI interview, Paul Brennan, a partner and co-head of Real Estate at King Street Capital Management, explains why today’s opportunity set lies in situations where high-quality assets face refinancing pressure despite resilient fundamentals, and how a focus on all-in basis, downside coverage, and structural seniority is shaping a more defensive, income-oriented approach to capturing asymmetric, risk-adjusted returns across European hospitality, student housing, and other supply-constrained sectors.
