- February 1, 2011: Vol. 5, Number 2

To read this full article you need to be subscribed to Institutional Real Estate Europe

For the Greater Good: If You Don’t Deal with Risk It Will Come Up and Bite You

by Richard Lowe

In October 2010, Henderson Global Investors published a research report on what it called the “investment timing paradox”. The investment manager argued that European real estate investors should consider moving up the risk curve to benefit from a risk premium that had arisen as a result of everyone flocking to the safety of core property. “We should see investors starting to deploy capital strategically in order to benefit from the new cycle [that is] emerging,” the report stated. “This is not, however, what we witness in Europe’s property investment markets, where investors and lenders still operate in risk-aversion mode, almost exclusively focusing on core assets.”

This widespread reluctance among investors to raise their heads above the parapet can be partly explained by a continuing uncertainty over the economic

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy