Warehousing, shopping centres and hotels are all capturing the attention of European investors, our news summary 31 May highlights. Looking ahead, demand is expected to pick up further as pandemic restrictions ease.
Significant capital targeting European hotels
By: Savills
Summary: With COVID-19 travel restrictions easing in Europe, investors are increasingly looking at European hotels and a significant amount of capital is expected to be deployed during the rest of the year and onwards. Mature markets and key gateway cities are likely to benefit most.
Key quote: Josh Arnold, Associate, Savills Research, says, “2021 will mark the early beginnings of recovery for many hotels, with the longer-term outlook remaining promising. The vaccine rollout in Europe suggests any current lockdowns will be the last, and that demand pick up is imminent. As countries begin easing restrictions, we can expect the staycation market to benefit in the first instance, followed by recovery across short-haul international leisure destinations.”
Source: https://www.savills.co.uk/insight-and-opinion/savills-news/314382/savills–significant-amount-of-capital-ready-to-invest-in-european-hotels-again
St Modwen deal illustrates appetite for warehouses
By: BNN Bloomberg
Summary: St. Modwen Properties Plc has accepted a £1.24 billion bid from Blackstone Group Inc. Shareholders are still to vote. As a result, Blackstone would gain more of the U.K.’s warehouse market. Competition for warehouses across Europe has intensified as the pandemic has seen a major shift towards online shopping.
Key quote: James Seppala, Head of Blackstone Real Estate Europe, says, “Our strong conviction in the UK, together with St Modwen’s high-quality asset base, its team, and its operational capabilities, give us confidence we can further build on the company’s successes. We look forward to working with the talented team at St. Modwen in the years ahead.”
Source: https://www.bnnbloomberg.ca/blackstone-agrees-to-buy-st-modwen-properties-for-1-7-billion-1.1606181
European grocery retailers on investors’ shopping lists
By: Union Investment
Summary: Investors are showing increasing interest in the European grocery real estate sector, encouraged by its resilience during the pandemic. That is according to The European Grocery Real Estate Market report by JLL and Union Investment.
Key quote: Mike Bellhouse, JLL, Director, Head of Retail Investment, International Capital Markets, says, “The European grocery real estate market is proving itself to be a secure and defensive sub-sector within the wider retail investment market.”
Source: https://realestate.union-investment.com/en/in-the-spotlight/european-grocery-study.html
REIT buys European logistics portfolio for €880m
By: Bloomberg
Summary: Canadian REIT Dream Industrial Real Estate Investment Trust has won an auction to buy the assets in a European warehouse fund. It will pay €880 million for the portfolio of 31 European warehouses, according to a company statement. The seller is Clarion Partners Europe.
Key quote: A Dream spokesperson, says, “All the assets are well located in their respective geographies, with easy access to transportation networks and are well poised for growth in income and value.”
Source: https://www.bloomberg.com/news/articles/2021-05-19/dream-industrial-wins-auction-for-1-1-billion-warehouse-fund
If you have found our news summary 31 May interesting, check out our previous news round-up.
