CRE Equity Believes in Europe, Says Swisslake

ZUG, SWITZERLAND-About $8 billion of shareholder capital has been invested in 22 new real estate private equity funds in the first quarter in Europe, a rise of 49% from Q1 2009, according to the latest estimates from Zug-based Swisslake Capital.

With its worldwide market share rising to 40.8% in Q1 2010 from 18.3% in 1Q09, Europe has become the top destination as investors continue to avoid the US despite early signs of recovery there. The news comes despite negative macroeconomic news from some EU countries, said Swisslake. Yields in many European centres have reversed and rental prices are stabilising. Banks are also increasingly prepared to provide financing to support fund managers’ activities.