The latest PREA Private Real Estate Quarterly Summer 2025 offers a compelling perspective on why institutional capital is rotating toward Europe.
Several factors are converging to support this shift:
🟠 Earlier and sharper repricing across European markets has improved price discovery and created compelling entry points.
🟠 The interest rate differential between the US and Europe now exceeds 200 basis points, creating meaningful positive carry for USD-based investors hedging into euros. This dynamic enhances the appeal of European credit on a fully hedged basis.
🟠 Structural tailwinds for credit including regulatory restrictions in the banking sector is pushing more and more credit into non-bank channels.
As Greykite puts it, “Europe is now positioned at the intersection of cyclical distress and structural resilience”. At Zenzic, we share this view, the combination of market repricing, strong underlying fundamentals and bank retrenchment is creating real opportunities, especially in places where values have adjusted but long-term demand remains intact.
At Zenzic we believe real estate credit appears exceptionally well positioned in this context.
Click here to read the full report: https://lnkd.in/eFW-dRzE
