With this month’s edition we’re retitling the publications — Institutional Real Estate Americas, Institutional Real Estate Europe and Institutional Real Estate Asia Pacific — and reformatting the covers so they have the same kind of high-quality, highly-strategic, more academic look and feel that characterised the original format of the old editions of The Institutional Real Estate Letter.
From the Current Issue
Many of the real estate markets in Europe are so buoyant at the moment that investors are starting to wonder if this is another bubble. Although some markets are undoubtedly hot, particularly the United Kingdom, we believe that there is plenty of value left in the mature markets of northern Europe and that investors do not have to invest in some of the riskier southern European markets in order to achieve good returns.
Competition for office space in central London is fierce presently as a result both of high demand from occupiers in Europe’s principal financial centre and office market, and of limited supply. There are now signs that developers are moving projects from the planning stage to implementation
The largest fund to close this summer was AXA Real Estate Investment Managers’ Commercial Real Estate Senior 9, raising more than €2.92 billion in equity commitments.
Both the principal office markets in Madrid and Barcelona and the retail sector across the wider country have seen recent deals that confirm the burgeoning interest of international real estate investors in the Spanish market.
Not so long ago, the market for commercial mortgage–backed securities, or CMBS, faced possible extinction.
The pull of European real estate has been substantial in the past two years across the equity and debt spectrum, driven by an enduring relative value compared to fixed income and other growth assets as well as by a low interest rate environment that is not expected to change in the near term.
This year is shaping up to become a record-breaker for commercial real estate investment in Europe after a first half in which transaction volumes rose 37 percent from the same period in 2014.
Over the past couple of years, European real estate returns have been largely driven by investment in distressed opportunities. Value investments were plentiful, both in the core and core-plus styles.
How many times have you heard that before? It’s one of the most often used and abused phrases in real estate, a few simple words that can be used to justify just about any decision, particularly when markets begin to look somewhat frothy.