Real Estate Fund Manager Says Europe Undervalued

8/14/2017 | By Allen Kenney

Jay Leupp

In the latest episode of The REIT Report: NAREIT's Weekly Podcast, portfolio manager Jay Leupp of Lazard Asset Management discussed his outlook for global real estate investment in the remainder of 2017.

Regarding the fallout from the Brexit vote, Leupp noted that he viewed the situation as a buying opportunity for U.K. real estate when the vote was held 12 months ago. Areas such as urban London presented attractive valuations, according to Leupp, offering opportunities to add to existing investment positions.

In terms of potentially undervalued markets, Leupp pointed to continental Europe. “We believe that the high-quality assets, particularly in the office, industrial and retail sectors are probably slightly undervalued,” he said. Leupp also singled out the German residential market as an attractive investment target.

In Asia, Leupp said he remains bullish on Hong Kong and China. He also noted emerging markets such as the Philippines are promising.

Leupp said the strong performance of property markets could be building to “a maturation in fundamentals” in some sectors. In general, “we’re being careful,” Leupp said.

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