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JUNE 27, 2022

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European investors display increased preference for value-added strategies

by Marek Handzel

According to the 2022 INREV/ANREV/PREA Investor Intentions survey published in January, €67.5 billion of new capital was targeted for deployment in global real estate this year, with 41 percent focusing on Europe (€31.4 billion). Investors targeting Europe exhibited an increased preference for value-added strategies at 57 percent, the highest level since 2008. Fast-forward to the tail-end of the second quarter and this inclination shows no sign of going away any time soon.

Three main drivers lie behind the push towards value-add plays.

The first lies in the confidence that investors have in prime markets. As Charles Ferguson Davie, chief investment officer at Moorfield, puts it, many investors are increasing their allocations to real estate globally. As a result, there is appetite for value-add investment, simply because there is more capital looking to invest in real estate.

The second reason for greater interest in value-add is due to one of the r

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