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Pan-Europe Cap Markets review to European investment volumes bounce back

London –European investment volumes witnessed a strong bounce back in Q4 2020, with key markets witnessing improving liquidity and the return of global capital notes Colliers in its latest European Capital Markets report.

Investment into Direct European real estate reached €252 billion for the full year, a 25 per cent fall on 2019, but the figure masks a range of different performances across countries. In Denmark, volumes were up 20 per cent year on year, whereas in Germany hit €59.2bn representing the third highest end-of-year result in the past ten years and the UK only down 20%.

Richard Divall, Head of Cross Border Capital Markets, EMEA at Colliers, commented: “Momentum in Q4 2020 was driven by the industrial and logistics sector with several national and Pan-European portfolios attracting strong demand from Chinese and North American capital sources. We also saw investors adopt different strategies to increase their allocations to the highly desirable I&L sector including M&A, recapitalisation of existing portfolios and formation of strategic partnerships.

Pricing for core offices with stable income remain resilient and investor demand for long secure income is attracting a premium in key markets according to the firm. Meanwhile, investors continue to build up their allocations to the living sector with strong demand for the forward funding of portfolios at a national level in the UK, Nordics, Benelux and Germany. Activity is growing in markets with rising demand in particular in Spain, Italy & CEE.

Richard continued: “This year we expect there to be significant interest in the alternative sectors including life sciences, senior living and assets backed by technology sub-sectors. All of which are poised to play a larger role in institutional investor portfolios. Last year saw AXA acquire Kadans, a leading owner and operator of science parks and laboratories in Europe, and these types of assets could generate outperformance relative to traditional real estate property types in the year ahead. 

“Investors have adopted a cautious but confident approach in Q1 2021, despite lockdowns limiting cross-border transactions. We expect cross border investment to rise this year as the vaccine is rolled out, allowing a relaxation of travel bans and quarantine measures.”


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Richard Divall

Head of Cross Border Capital Markets I EMEA

As Head of Cross Border Capital Markets, EMEA, I work with international clients who are interested in investing in the region and connect them with the best local Colliers expert based on their investment requirements. Conversely, I also help investors based in EMEA expand their portfolios to other regions around the world. Through my extensive connectivity in the global real estate market, I can connect capital with local expertise, regardless of location.

I work with a broad spectrum of clients including Sovereign Wealth Funds, global institutions, global private equity investors and high net worth individuals. Clients choose to work with me based on the full range of advisory services I provide including a macro view on local economies and property sectors, investor sentiment around the world and access to local buyers and sellers.

Working with local offices in EMEA, we are able to provide a full range of advisory services including:

  • Local market reports
  • Financial analysis
  • Professional services
    • Asset management
    • Building surveys
    • Valuation
  • Initial tax advice
  • Banking finance

I have over 17 years real estate investment experience and during my career I have been involved in over £2billion in transactions in the UK.

 

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