Publications

- May 1, 2014: Vol. 8, Number 5

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Making the case: The current rationale for opportunistic investing in Europe quickly leads to Germany, Poland and the Czech Republic

by Roger Barris

Lately, there has been a noticeable increase in interest from investors, particularly US investors, for opportunistic real estate investment in Europe. At Peakside Capital we agree with this shift, but we also think that it is very important to differentiate between countries in Europe. Europe has never been “one size fits all”, and the differences between countries are now even more pronounced. It is also very clear to us that the euro zone crisis created residual problems, notably the sovereign debt overhang, which will make Europe a low-growth area for the foreseeable future.

In this environment, an investor must both buy well and add value. Without both these factors, it is exceedingly difficult to generate opportunistic returns. This environment also implies that a “bottom-up” approach is required: investing building-by-building, in a “buy, fix, sell” strategy, rather than trying

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