Realcast: Meeting face-to-face, inflation not all bad, a positive way to look at stranded assets

In the spotlight this week:

Real Asset Media held a face-to-face investment briefing in Frankfurt during the last few days with a panel discussion both in front of a live audience and viewable online via the RealX platform.

One speaker, Corestate head of research Mark Holz, pointed out that real estate is doing well despite current circumstances, partly because of its role as a hedge against inflation.

The low-inflation, low-interest party is over for property, he said. Nevertheless, investor interest is still strong but uncertainty can encourage some investors to sit on their hands and Corestate expects H2, 2022 to be slower.

One positive is debt finance. Traditional lenders’ caution has opened the door of opportunity for alternative lenders as Norbert Kellner of Berlin Hyp pointed out.

Discussions around ESG revealed concerns about the lack of a global regulatory framework for ESG, exposing the subject to different interpretations. However, there is progress and Berlin Hyp has followed its green bond issue with a social bond.

But stranded assets are still a concern. However, along with the increasing costs of construction, stranded assets do create more pressure to repurpose buildings.

And while more green loans have been issued, indoor farming has been heralded as the next generation of infrastructure investing.

Among recent deals, while a portfolio of Carrefour hypermarkets changed hands in Italy and logistics is again in the news. Arvi Luomo’s Blackbrook announced development funding for a project in Poland while Cromwell has assembled €126 million-worth of logistics in continental Europe.

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