12 October 2017
London
Reporter: Theo Andrew

Investors eye hotel and office sectors, says BrickVest survey


Hotel and office sectors will provide the biggest real estate investment opportunities over the next 12 months, according to research by Brickvest.

The research, which surveyed 99 institutional investors, found that 34 percent thought the hospitality industry would deliver the biggest opportunities, while the same figure favoured the office sector.

The news emerged as Patrizia Immobilien was chosen by a German pension fund to build and manage a €200 million pan-European real estate portfolio targeting office, hotel and residential assets.

In addition, Henderson Park recently purchased two Hilton Metropoles in the UK for £500 million.

The industrial sector was a close third with 31 percent of investors opting for big box, while 19 percent thought retail and leisure would provide the most opportunity.

Despite this, Emmanuel Lumineau, CEO at BrickVest suggested that Brexit will have a knock-on effect on the European office sector.

Lumineau said: “We expect to see the highest level of volatility from the office sector as many international firms currently headquartered in the UK may put decisions on hold over their long-term office space requirements.”

“If the UK no longer gives businesses access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and European market.”

Notably, 44 percent of investors expect commercial property yields to increase over the next 12 months, with just 22 percent expecting them to decrease.

A lack of liquidity was found to be the biggest challenge facing institutional investors investing into commercial real estate, with 58 percent highlighting the issue.

Other issues highlighted in the research included regulatory and compliance reporting costs at 36 percent, lack of viable projects at 33 percent and inefficient processes at 22 percent.

The research showed that the two most popular routes of access into the commercial real estate market were property funds at 49 percent and REITs at 30 percent.

Lumineau added: “Through our online investment platform we continue to see rising demand for high quality commercial real estate, especially in the form of debt like investment opportunities which offer good risk adjusted returns in a volatile market environment.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Standard Chartered boosts CRE team
11 December 2017 | Singapore | Reporter: Stephanie Palmer
Standard Chartered has named Steven Cranwell as global head of commercial real estate for its global banking business
SoftBank and Compass in ‘largest ever’ US real estate tech investment
08 December 2017 | New York | Reporter: Stephanie Palmer
Real estate technology firm Compass has won $450 million in investment from the SoftBank Vision Fund, in what Compass has called the largest ever real estate technology investment deal in US history
Tristan fund makes first foray into Germany
07 December 2017 | Bonn | Reporter: Stephanie Palmer
The CCP 5 long-life fund, a core-plus fund advised by Tristan Capital Partners, has made its first investment in Germany, acquiring an office complex in Bonn for €35 million
JLL develops UK corporate solutions team
07 December 2017 | London | Reporter: Stephanie Palmer
JLL has named Sue Asprey Price as lead director of its corporate solutions business in the UK, with immediate effect
Link Asset Services appointed as real estate fund administrator
06 December 2017 | London | Reporter: Stephanie Palmer
Warehouse REIT, a specialist warehouse investor managed by Tilstone Partners, has selected Link Asset Services for fund administration
Dutch portfolio sold for €200 million
05 December 2017 | Amsterdam | Reporter: Stephanie Palmer
Patrizia Immobilien AG has sold a portfolio of 61 residential properties in the Netherlands, for around €200 million
Allianz tops off bumper 2017 with Broadway acquisition
04 December 2017 | New York | Reporter: Stephanie Palmer
Allianz Real Estate has acquired a 43 percent stake in 1515 Broadway, New York, a class-A building valued at $1.95 billion