Realcast: Germany back in the fast lane, logistics leviathan on track, positive signs for retail

In the spotlight this week:

Data from Inga Schwarz of BNP Paribas Real Estate, unveiled at Real Asset Media’s briefing on the outlook for Germany, revealed that the country’s real estate market has entered a new league and is performing well above its five-year average.

Offices took a 48% share of the market, logistics had its strongest year ever in 2021 and hotels are making a comeback, while grocery is a bright spot in the beleaguered retail sector. Meanwhile, the residential market has risen “off the scale”.

The country retains its safe haven status and even the politics are stable despite a new coalition government. And, while international investors have been largely absent during covid, their return is expected. In the meantime, individual German cities have been attracting as much investment as some entire countries.

But ESG remains a ubiquitous topic and real estate financiers are gearing up to provide even more of the funds that low-carbon transition will require.

Elsewhere, more news in the logistics sector ws exemplified by Ardent, Patrizia and LaSalle as well as Blackstone’s $21 billion recapitalisation of its last-mile unit Mileway. And in the past week DHL’s head of European capital markets Ben Segelman gave Real Asset Insight the logistics occupier’s view of the sector’s future.

Meanwhile, Legal & General is to invest a further £2.5 billion into the UK build-to-rent market, first round bids will soon close in the sale of the vast Boots pharmacy chain and portfolio, Ocado’s results detailed its new joint venture with France’s Groupe Casino, and the online grocery retailer’s technology division is sharing the company’s technology with other retailers, producing revenues of £66.6 million.

And, in an indication of the positive effects of the resumption of travel, Hilton Worldwide Holdings reported revenues up 106% in Q4, 2021.

Click on the video above to watch the full discussion or listen to the podcast below.