Favorable Outlook for European Listed Real Estate Market
Claudia Reich Floyd, vice president and head of real estate securities for 4IP Management, spoke with REIT.com's Allen Kenney at REITWeek 2010 about the state of the European commercial real estate markets.
Floyd says the anxiety in the European financial system stemming from concerns about Greece did not impact real estate securities in Europe anymore than securities in the U.S. or Asia.
"The flight to securities has helped the European real estate markets," Floyd says. "You have seen stock corrections. Currency has played a major factor. You see the markets that are more stable outperforming."
Floyd says she does not expect convergence of REIT rules to establish a single European-REIT legislation for at least the next several years due to broader issues with the European Union.
That being said, Floyd says in recent months interest has among European institutions to invest in real estate securities. She adds that interest has been particularly high in Germany. The liquidity advantage of REITs will continue to be a major draw for institutions, she says.
Looking ahead to the second half of 2010, Floyd says a major theme related to the European commercial real estate markets will be the introduction of new companies to the market through IPOs.
"Also, I expect existing companies that have stable balance sheets will buy assets banks are starting to unload from their balance sheets," Floyd says.