European sale-leaseback investments offer a compelling opportunity for investors relative to other strategies at this point in the economic cycle, according to Clarion Partners.
In a report called European Sale-Leaseback: A Timely, Strategic Opportunity in Europe, the manager says the sale and leaseback market is ripe for investment as several factors have aligned to create a “fertile environment” for corporates to unlock cash from their real estate.
Assuming interest rates continue to decline and rental growth continues to moderate, Clarion Partners has identified three main reasons why sale and leaseback investments offer the robust, risk-adjusted returns while also providing portfolio diversification benefits.
First, write the report’s authors — Indraneel Karlekar, managing director and global head of research and strategy, and Bruno Berretta, head of research, Europe — limited financing availability and high costs are driving sale-leasebac
