Realcast: Outlook for debt, data centre shortage, MAPIC awaits, perspective from Singapore

In the spotlight this week:

Real Asset Media’s in-person Investment Briefing in Frankfurt looked at debt financing and among the key findings: transaction volumes are expected to be 40-50% lower in the first half of 2023 as ‘wait-and-see’ attitudes prevail; acquisition financing requests are now exceeded by refinancing requests; the banks are avoiding the worst effects because they have been disciplined and not seduced by big lending volumes.

However, private debt and alternative providers are expected to take a hit next year though and some consolidation can be expected. Meanwhile, insolvency is most commonplace among developers and construction firms.

INREV figures reveal strong demand for European non-listed real estate debt strategies with a €12 billion high likely to increase next year as Europe becomes a bit more like the United States in its shift to non-traditional lenders.

Elsewhere, Colliers indicate that the current economic conditions are making sale and leaseback one of the most attractive methods for corporates to monetise the more mission-critical real estate assets especially those tied into sustainability initiatives.

An emerging theme has been foreign companies entering the German residential market. Both NREP and Henderson Park have forged links with local companies for that purpose. The living sector remains a dominant theme in Germany, as elsewhere. International Campus returned to its roots acquiring a student accommodation asset in Bremen which it already manages andhad served as a test bed for its The Fizz brand.

Elsewhere, Savills research reveals that there is an insufficient pipeline of data centre developments planned for Europe although the number needs to increase by a factor of two and a half, or 3 000.

In Italy, Eurofund Group has acquired an open-air shopping centre located on the edge of Parma in the north of the country and plans to invest about €25 million to create Parma Promenade, reminding us that this is MAPIC week. About 5,000-6,000 delegates are expected to attend the retail and leisure real estate show in Cannes, France, and this year the MAPIC Awards return too.

Also this week, Real Asset Media will be in Singapore for Outlook 2023: Europe & Asia – Capital, ESG & Key Investment Drivers. Join us live on on 1 December, 9:00 AM UK / 10:00 AM CET.

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