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Dollars Flood Into Europe

BERLIN- Two leading US fund managers have predicted a surge in US money flowing into Europe.

By Graham Parker | Updated on June 04, 2001

BERLIN- Two leading US fund managers have predicted a surge in US money flowing into Europe. Similar waves of investment have been predicted in the past and not materialised, but now the time could be right.

John Carrafiell, head of Morgan Stanley’s European Real Estate Group told the British Council for Offices conference in Berlin last week that almost $20 billion has already been raised by opportunity funds such as PRICOA, MSREF, Whitehall, GE Capital, Soros and Peabody. And others are even more bullish: Jonathan Short, Chief Executive of PRICOA Property Private Investment, repeated Goldman Sachs’ estimate that $25 billion had been earmarked for European investment.

US funds are under pressure to increase their exposure to real estate after over-buying equities. For instance Carrafiell said Morgan Stanley’s chief analyst is recommending they increase exposure to around 15% of total investment over three to five years. Real estate currently averages less than 4%.

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