Focused on Southern Europe
At Columbus we are certain that our investment thesis offers investors the best returns in the current European real estate markets. In current, low interest rate, low inflation environment, investors continue to value European real estate for yield.
Eurozone property yields and interest rates, 2007-2016:
— People do not want to be in cash, they want to be invested, and real estate assets area attracting important amounts of capital because people are looking for yield.
— Prospected investments are more about healthcare, leisure, housing as opposed to retail, offices, industrial. It is much more about social infrastructure that it is highly under-invested.
— Hotels, student housing, retirement/assisted living, healthcare are the principal targets.
— These sectors officer a measure of diversification and stability of income returns when mainstream real estate looks expensive and vulnerable to economic uncertainty. But there is also a growing acceptance that the alternatives are broadly in step with long-term demographic trends.
Sectors being considered:
— There is now a sustained shift of capital into these sectors, reflecting the idea of real estate becoming a service rather than simply bricks and mortar.
— Investors have just got to get their minds around real estate becoming a more operational asset rather than just a lease.
— Sector wise, real estate is approaching a tipping point where the alternative becomes the norm. While they are still seen as difficult to access, alternatives are growing in popularity an are seen as offering the best returns.
— In a changing real estate world, traditional offices and shopping centers are now classed as among the riskiest assets, left behind by urbanization and changing consumer habits.
Extracts from the Emerging Trends in Real Estate Report: Europe 2017, PwC.
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