Europe

Working-from-home is in sharp decline while sustainable workplaces attract occupiers.

The UK asset manager has acquired a majority stake in BauMont Real Estate Capital to diversify into higher-returning real estate.

The New Jersey-based manager’s co-CEO said pricing has dropped low enough in certain markets to consider alternative use.

Five years after shifting away from the sector, the investor has partnered with manager DivcoWest to take advantage of ‘current dislocation.’

The practice enables the UK local government pension schemes to explore new areas of private real estate, such as impact investing.

With one eye on the new market cycle, emerging and evolving capital sources are mobilizing to make the most out of an allocation to private real estate.

As real estate markets in Europe bottom out, certain factors can help identify cities with growth potential, says Arrow Global’s Ellis Sher.

In 2024, market vacancies increased with new construction delivered vacant, but this trend should reverse as demand and supply return to more manageable levels.

The investor’s newly formed international team has partnered with Delancey to invest £1bn in the UK, with London offices as the initial focus.

Alongside the APAC-focused main fund, the firm is working with Aermont Capital to develop a separate sleeve for European data centers.