In the spotlight this week:
The Bank of England warns of the longest recession in 100 years and raises rates to 3% which, a 75 basis point rise. We’ll have an early opportunity to assess that, looking particularly at CCE markets with our see investment briefing this week in London. However, the ULI and PwC’s Emerging Trends in Real Estate Europe report, now in its 20th edition, revealed industry experts expect a tough year ahead with reduced finance, declining values and looming recession – 71% expect recession before the end of 2022.
There are bright spots such as residential. One example this week was the news that the Pension Insurance Corporation has forward funded the development of a 154-metre high residential tower in Birmingham, the tallest BTR tower outside London.
Energy infrastructure is another area of investment activity likely to persist through the recession and Germany-headquartered Garbe has announced it is forming a spin-off company Garbe Infrastructure which will concentrate on photovoltaics, charging infrastructure and biomass developments.
Also Actis subsidiary Resolv Energy is to build and operate a one giga watt PV plant in western Romania – the largest PV plant in Europe – expected to be online by 2025.
And, Thor Equities acquired a former Coca Cola bottling plant outside Madrid as the basis of a €600 million data campus.
CBRE Investment Management meanwhile acquired a mixed-use scheme in Berlin close to the German parliament building with the idea of actually converting some of that to residential.
And Irish company Greenman, which specialises in German grocery-based retail real estate, has launched a property and financial management unit .
And Orchard Street has launched a new Impact Fund raising €90 million at first close.
Real Asset Impact was meanwhile recognised at the recent Aviva Investors Sustainability Media Awards. Our congratulations go to all of the winners.
Click on the video to see the full discussion or listen to the podcast below.