Money into Property--Europe
DTZ's figure, which includes sale and leasebacks, outsourcing and pure disposals by both corporates and governments, compares with a figure of around €30 billion ($35 billion) over the last four years.
Peter Collins, Head of Global Investment at DTZ commented: 'The market has largely been dominated by the opportunistic funds and going forward they will have more regard to covenant strength and the underlying asset value of the property.'
DTZ's report also quantifies the importance of debt finance to the real estate market in recent years. Private debt outstanding to the real estate sector now exceeds €800 billion ($922 billion), with the German, UK and French debt markets accounting for more than half of this total. The most significant increases in debt outstanding to the real estate sector since 1996 were recorded in Spain (25% pa) and the UK (19% pa).
The report notes a potential mismatch between the attitude of lenders and that of investors in terms of sectors and locations being targeted. Lenders active in the 20 countries report an intention to reduce exposure to the office sector and raise exposure to retail in 2003. Paradoxically investors continue to seek to acquire offices, despite deteriorating supply and demand fundamentals. And while investors seek to concentrate activity in the six largest markets, lenders are keen to expand into Scandinavia, and, to a lesser extent, Central European markets.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
