Best opportunities in Logistics...
and old retail centres
Interview with Stuart Reid, Partner, Rockspring Property Asset Management. Stuart has given us his thoughts on the topics of lending landscape, investment opportunities, immigration and development. Stuart is co-chairing the discussion on Retail in B cities at Deutsche GRI 2016.
German Real Estate still seems a treat for foreign buyers, especially in the big 7, whereas German investors venture out. Where do you see the potential in the next 12 months?
Certainly in the office sector foreign and domestic investors continue to focus on the top seven cities where the majority of tenant demand and liquidity is to be found. I do not believe this will change. On the retail front both sets of investors seek dominant centres or locations in the stronger economic regions, now increasingly including the former east.
How significant are the issues associated with the high level of immigration we have seen last year?
In the midterm Germany is set to benefit with increasing population, consumer demand and younger workforce etc but there will be short term hurdles to be taken. Full integration may well need a generation or more.
We have become used to a low interest rate environment, benefitting investors. Are lenders prudent enough to prevent a bubble? Is the lending landscape in a healthy state?
Lending is healthy as LTVs are well below the last peak. 60% max I quite normal or slightly higher but with amortisation. If there will be a turn down it will be the equity that is lost next time around.
There is the lack of core products compared to non-core. Is more “new” development needed and where? How much risk do Investors accept?
New development based off sound tenant Demand is healthy. Over supply would be a major problem for the markets. Liquidity needs to be matched with experienced asset managers to ensure that core investors can widen their horizons towards core plus value add but without proportionally increasing their risk.
Where do you see opportunities and what are you specifically looking for?
Continued investment in older poorly managed retail centres where there is the potential to manage to core over time. Logistics development where demand supports
You have been part of GRI many times. What’s in it for you?
Update on market trends, thoughts, networking.
Die Nutzungsrechte wurden The Property Post zur Verfügung gestellt von Global Real Estate Institute
Erstveröffentlichung: Deutsche GRI, Februar 2016
