Our CIO, Thomas Lloyd-Jones was a speaker at the ULI United Kingdom Capital Markets Forum, hosted at PATRIZIA SE office’s. A few key takeaways that stood out from the conference:
👉 Europe is increasingly being viewed as a stable destination for capital, particularly in contrast to the short term political and economic uncertainty in the US, a shift that is influencing how and where investors are deploying capital.
👉 Key asset focus remains on multifamily, PBSA and data centres, with ongoing discussion around retail opportunities.
👉 Capital is expected to return to the office sector, especially for prime assets in strong locations. The market is already seeing signs of rental growth and resilience in areas such as London’s West End.
👉 The panel also touched on climate risk and sustainability, highlighting the continuing challenge of ESG, from inconsistent data to shifting regulations and varying interpretations (especially around the ‘S’). A key point raised was the need to price in climate risk well before physical impacts occur, suggesting growing implications for asset values and lending strategies.
👉 The panel questioned whether core real estate equity has truly underperformed, or if the return expectations have shifted. With 9% IRR targets often seen as hard to hit, it raised the question of whether they’re still achievable.
👉 This raised comparisons with real estate credit, which can offer similar returns through floating-rate senior loans, with the added benefits of equity subordination, cash flow priority, and refinancing flexibility.
Thanks to ULI United Kingdom and PATRIZIA SE for hosting a great event
