Development Deals – Limbo, Limited Pipeline or Never Better Yields

The first day of GRI Europe 2020 kicked off with a discussion on “Development Deals –  Limbo, Limited Pipeline or Never Better Yields.” The panel of real estate industry leaders were cautiously optimistic about the opportunities in the post COVID-19 world. 
Here are some highlights from the discussions:

  • Residential including PRS schemes, logistics, data centre were most favored. However, opportunities in office in areas with favorable demographic trends were highlighted. 
  • Hospitality in vacation focused sectors will be ok, but hotels focused on the business traveler will take a long time to come back and are under the most stress. 
  • In terms of lending, liquidity has picked up but banks financing will prove challenging.

Bottom hit? Ready for risk?

The third and final day of our GRI Opportunity eSeries Europe gathered GRI Club members online to understand the European real estate investment and transaction landscape. Most members agreed that they are not seeing distressed assets as of yet and they are focusing their efforts on understanding new trends and demand, as well as going back to investment basics.

Next to retail and hospitality, offices was seen as another asset class where distressed opportunities might hit the market in the next 12 months. However, most investors are still adopting a wait & see attitude as of yet, also due to increasing debt and prices across the more resilient assets.

Special thanks to Anas Halabi (3S Capital), James Piper (TPG), Joseph De Leo (Benson Elliot), Karim Habra (Ivanhoé Cambridge), Laurian Douin (BC Partners), Peter Plaut (WIMMER FAMILY OFFICE LTD) and Tavis Cannell (Goldman Sachs).

The GRI Opportunity eSeries Europe featured GRI Club members as a warm up for our Europe & France GRI in September in Paris where the conversation will continue:

#GRIClub #RealEstate #investment #Europe