Deal security is eclipsing price in French investment market

While the last year the French investment market has been characterised by large tenders that have attempted to maximise real estate value, that has now changed according to Faro Capital Partners’ managing director Guillaume Turcas.

He said that the market now operates via one-on-one discussions or limited tender offers because security is taking precedence over pricing.

“What we see is more of the smaller brokers or smaller agents trying to do deals where security is the top priority for the deal’s sake,” Turcas said.

He added that most of the strategies now deploying capital in France, principally in Paris, are core-plus and value-add.

“At the moment the core-market is trying to find a solution: How to distribute returns that are in line with their distribution profiles ,” he said. “This trend of having more core-plus/value-add is going to be enhanced in the coming quarters as more assets come to market with asset management or capex needs.”

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