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Realcast: CEE on the road to recovery, debt steps up, build-to-rent’s popularity is rising

In the spotlight this week:

The first of two Real Asset Insight Investment Briefings revealed that the CEE market is recovering with investment transactions of €7.3 billion in the first three quarters of 2021, which is expected to rise to €11 billion by the end of the year. Poland still accounts for 51% of total volume but it relies on foreign capital for 98% of its deals – difficult in a crisis like Covid.

And in the briefing on European Debt Finance and Investment, it became clear that this market too has bounced back, in particular because traditional banks cannot cope with the demand.

Meanwhile, NPLs are set to make a comeback although unlikely to be big in cautious Germany. One contributor to the rise in NPLs could be the demands of ESG causing more distress.

But on the other hand, the premium for sustainable real estate could be as high as 29% according to CBRE’s research.

Meanwhile, L’Etoile Properties has launched a new fund for ‘broken’ core, Macquarie is investing €63 million in Polish last mile logistics and Apollo is taking a €300 million stake in CPI Property Group.

Built-to-rent’s rising popularity has seen Aviva Investors begin a €700 million BTR enterprise, Goldman Sachs turn to single-family BTR in the UK and American private equity group KKR  investing in the sector in the UK too.

For all this and more, click on the video to watch the full interview or listen to the podcast below.