The Coronavirus crisis has created a once-in-a-lifetime investment opportunity for influential international commercial property investors who have been sitting on their cash, says a new report.
Private equity firms around the world have an estimated US$328 billion ready for the once-in-a-lifetime investment opportunity, according to the data firm Preqin.
As values in some sectors have fallen due to COVID-19, they are looking for keenly-priced commercial property opportunities, reports the South China Morning Post.
Large funds with billions to invest are on the look-out for distressed properties, where they can create added value.
Sellers are often willing to offer discounts of around 5%, but buyers are aiming for something nearer 20%, says the report.
Until the retail sector fully opens up and travel takes off again, it is difficult to accurately gauge the true value of some property, it is claimed.
But the industrial sector in Europe is still holding up compared to the last quarter, according to the Green Street Pan-European Commercial Property Price Index. At the end of April 2020 values are up 2.2% over the last three months and 10.7% year-on-year.
“High-quality office and most industrial assets are still likely to trade at punchy capital values per square meter,” says the report.
Consorto, the marketplace for European commercial real estate, has generated more than €500 million in offers during 2020. We currently feature listings worth a massive €11.5 billion as well as active investor requests totalling €5.4 billion.
Our listings include office, industrial, retail, hotels and resorts, land, mixed-use, special purpose and development sectors. We also have a special wanted property and Private Listings section. Listing is free of charge and sellers only pay a fee once their deal is complete.