Deals activity destined for an increase as market transforms

The macro environment for European investment has definitely improved compared to last year according to Duco Mook, head of treasury and debt financing EMEA at CBRE Investment Management.

“Last year, liquidity was scarce, the bond market was closed and there was a lack of transactions,” Mook told Real Asset Insight during EXPO Real.

“This year we see more traction with investors, the bond market has opened up, the stock markets are continuing.” He added that there are yet more reasons to be positive about the macroeconomic environment, interest rates have stabilised and the outlook there is more certain, while valuations have bottomed out following the stabilisation and repricing of yields.

“Now, transaction activity needs to pick up a bit, but I’m sure that will come in the next few quarters.”

He added that the lenders that CBRE IM spoke with at EXPO Real had balance sheet issues last year.  But the situation has changed: “I would say that those lenders that have their house in order, that have less exposure in particular to US offices, they are open for business. Also, their liquidity spread is stable. Mainly, the strategy of lenders is driven by the issues that they potentially have in their books,” Mook explained.