With London property perceived as cheap and office property still popular, European commercial real estate investors are increasingly active, our News summary 22 March suggests. Find out who is the world’s number one broker and why data centers are seeing record growth.
London CRE is ‘cheap’
By: BisNow.com
Summary: London’s real estate investment market is more reliant on overseas investment than almost any other in Europe and its commercial real estate is “cheap.” So says Valesco founder and Chief Executive Shiraz Jiwa. Last year, Valesco undertook the largest single-asset deal in Europe when it bought an office tower in Brussels for €1.2B (£1B). It has said it is looking for UK deals between £100M and £1B.
Key quote: Shiraz Jiwa says, “When we look at relative value, and we look through the lens of a pan-European approach, and that includes the UK, you look at prime yields in the office sector in the City of London, they are 100-200 basis points wider when compared to somewhere like Berlin or Paris.
Whereas the liquidity of London is stronger, the resilience of London is stronger, the infrastructure and talent is always up for debate, but on the level of real estate fundamentals, London is cheap, and we see that as a real opportunity.”
Source: https://www.bisnow.com/london/news/capital-markets/this-acquisitive-asia-backed-investor-says-london-real-estate-is-cheap-108151
CBRE is world’s top broker
By: RCA Capital Analytics
Summary: CBRE is the leading broker worldwide in 2020 based on sell-side activity for the 10th year running, according to RCA Capital Analytics. JLL was second and Cushman & Wakefield third.
Key quote: Story writer, Simon Mallinson says, “CBRE came out top in the three global zones: the Americas; Europe, the Middle East and Africa (EMEA); and Asia Pacific. JLL placed second in EMEA and the Americas, and third in Asia Pacific. Rounding out the top three ranks in each region were BNP Paribas (ranked third in EMEA), Savills (second in Asia Pacific), and Newmark (third in the Americas).” The image is © Albert Bridge (cc-by-sa/2.0)
Source: https://www.rcanalytics.com/2020-global-broker-rankings/
Record growth in Europe data center sales
By: DC Byte
Summary: Demand in the EMEA data centre market in 2020 rose 11% year-on-year. It reached a substantial 701MW and a 19% increase in new supply, totalling more than 1,589MW. That is according to the latest research by Knight Frank and DC Byte.
Key quote: Ed Galvin, Founder and CEO of DC Byte, says, “Demand for data centre space and public cloud services has soared over the past year and this report demonstrates the underlying strength of the data centre market continues to gain momentum; growing exponentially, both in core and emerging markets.”
Source: https://www.dcbyte.com/blog/emea-data-centre-markets-report-record-growth/
Investors put their faith in offices
By: BNNBloomberg
Summary: Offices topped a list of targets among 415 European real estate investors. This show that European real estate investors are still putting their faith in offices, says CBRE.
Key quote: Chris Brett CBRE managing director for EMEA capital markets says, “The certainty around Brexit has changed the mindset of some investors and pumped a renewed confidence into the London market, where we expect to see a lot of European capital deployed over the next 12 months.”
Source: https://www.bnnbloomberg.ca/europe-s-real-estate-investors-put-their-faith-in-the-office-1.1577089
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