Known for its distinct nature, real estate is a unique asset class in which each single property can perform totally different from its comparable adjacent property.
Similarly, Western Europe’s real estate assets cannot be like each other, whether from jurisdiction, laws, taxes, location, type of property, tenant or even the asset position in the market. Yet, what is commonly attractive from investment point of view, is generally the:
- predictability of cash flow due to strong enforceability of contractual agreements (e.g. lease agreement),
- diversity of investable property types and the spread in different noncentralized cities,
- depth of secondary market for trading assets and for placing new lease contracts, and
- strong appetite from debt providers to offer limited recourse financing at attractive terms.
Our Europe Real Estate Strategy provides exposure to the advanced economies of Western Europe with special priority to German speaking DACH countries, which enjoy even stronger investment case than the rest of Europe. The strategy can be better outlined from investment strategy and the property types.
From investment strategy, we focus on:
- Core-Plus investments - properties that generate income and moderate capital gains at divestment,
- Value-Add investments - properties that have little to no income at acquisition and require moderate capital expenditure to achieve strong capital gains at divestment.
From commercial property type, we focus on:
- Top preference - logistics & industrial, offices, hotels and specialized assets like data centers, senior-living, medical and educational assets.
- Second preference - shopping centers, retail, and other assets.
