What do investors want right now? What are their preferred opportunities, and what do you need to know about them? This series sums up what one investment adviser has gathered from roadshows, conferences
Heard in Paris during a conference by the CEO of a leading global property asset manager: “The current 2.5% to 3% pricing for prime oﬃces does not work for us. For this part of the market, we will do development and value-added acquisition but no core strategies for core oﬃces” – a remark that conﬁrmed this CEO’s reputation as having a blunt, straightforward personality. In front of a large real estate audience, the point was made clear: most of the classic investors (funds, asset managers and listed property companies) are not involved in prime oﬃces. This market is instead driven by a small group of pension funds and insurance companies and also by some families. In this context, for core strategies, the asset managers’ preferred sectors for 2020 are likely to remain industrial, alternative and residential, not oﬃces.
Heard during MAPIC in Cannes, where the retail property industry gets together in November: “Are you aware that company A is preparing a mega portfolio disposal?” … “I have learnt that the 2019 published footfall is going to be the highest growth rate of the last ten years” …
“Company B will not launch its landmark shopping centre development – I have been told” … “Company C has no other choice than a highly discounted rights issue and it is going to hurt.”
I will be able to quote much more of such retail-related gossip, as I am ﬁnding that many investors, advisers and brokers are now sharing with me gossip as well as facts. In my view, this is due to the high level of uncertainty in the asset class as well as, to a certain extent, a spirit of revenge.