Europe

Institutional appetite continues its recovery as conviction builds into 2025, writes James Jacobs, head of real assets for Lazard’s private capital advisory group.

Investors’ top risk factors, favored sectors and performance expectations from private real estate are shifting as the industry finds a path to recovery.

As more investors look to add hotels to their portfolios, managers are adjusting their approach to investment structures.

Encouraged by shifting market conditions and resilience to economic challenges, managers and investors are backing the sector to deliver strong returns in the next cycle.

Ted Gooden, whose business Växa Partners will focus on M&A advisory and strategic consulting, expects ‘very transformative’ deals over the next five years.

Stabilizing logistics markets and a recent lack of supply are providing new opportunities, say Verdion’s Simon Walter and Jonathan Harris.

Currently, the two markets account for nearly 90% of the firm’s existing REIT portfolio.

Fundamentals remain strong and investment activity is picking up, but specialist knowledge is crucial to unlocking performance, say abrdn’s Robert Cass and Tritax’s Henry Stratton.

The firm’s C-suite executives may hail from Goldman Sachs, but its property business has multiple links to another industry heavyweight.

Further rent growth is likely across this highly in-demand sector, suggests Dream Industrial’s Alex Sannikov.