At the end of a very sad week for the United Kingdom, with the passing of Queen Elizabeth II, Real Cast reflected on the big challenges facing the world and impacting our sector.
Experts that gathered for Real Asset Media’s Trends 2022 briefing in Brussels acknowledged the many headwinds facing real estate, and the fact that many investors have taken a wait and see attitude. But they expressed the belief that activity will pick up later in the year and that allocations to real estate will continue to grow. In times of crisis investors want something they can “hold touch and feel”, said Byron Carlock of PwC, and they are also go on the hunt for opportunities.
The EPRA conference in Paris gave much food for thought with interesting discussions on the uncertainty around inflation, interest rates, geo politics and the global economy. It was the first time for three years that the listed sector had come together and it was good to get the perspectives of both European and US industry leaders.
In interviews with Real Asset Media both Professor Nouriel Roubini and Anders Fogh Rasmussen, former secretary general of Nato, highlighted the importance of sustainability – both in terms of a bigger
focus on resilience against climate change but also using the current energy challenge to transition
to a green economy. Professor Roubini also pointed out that inflation makes real estate more attractive to investors.
Other news in the week included M&G starting a 200million pound mixed-use project in central London,
and Helical selling the London HQ of TikTok for £158 million to a Hong Kong based investor.
Grosvenor sold a build-to-rent project in South London to Greystar and ADIA. Patrizia made a E70
million debut in the PBSA sector in Italy, and COIMA are developing a fashion hub in Milan’s
Porta Romana area – a positive sign for retail.
Picking up the themes around infrastructure we often cover, Golding Capital Partners raised over £1.5 billion for its two infrastructure funds and is already planning to launch a dedicated investment strategy, also structured as a fund of funds, with a special focus on energy transition. So the news are really reflecting some of the trends we have been discussing in RealCast over the past months.
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Author: Nicol Dynes