Takeaways from our European days in NYC
Last week we hosted our 10th European Property Conference in New York, which with 19 companies from all over Europe and some 45 investors was again a great success. The general atmosphere was rather upbeat among both the investors and the corporates, with companies generally optimistic about the outlook for property markets on the Continent, albeit a bit more mixed about the outlook for the UK. Investors’ attitude towards Europe also seemed relatively constructive, although there was a clear difference in levels of interest for specific companies, with in particular British, German and Spanish scoring high in the popularity rankings.
What did we learn? In terms of company specifics, the German residential companies all remained upbeat about the outlook for the sector. Although companies acknowledged that tenant turnover in Berlin had come down, as we wrote in our, well received, Stuyvesant Town Kempen View last Thursday, it is still 7-8% for them on average, so the companies remain confident to maintain high l-f-l rental growth.
In Spain companies which have a significant parts of rental contracts maturing in the next 36 months, should capture impressive reversionary upside. After the REIT rush to list in 2013 (Socimi in Spain), we’ve seen the first announcement of a liquidation plan recently which will result in distribution of capital to shareholders during the process. For others after the asset growth phase focus is now very much on driving occupancy now that the big deals are done and yield compression is largely over, as reversionary upside is more modest.
In retail, the focus for many still is on upping the average portfolio quality and size via disposals and investing in the remaining core-assets. Redevelopment makes sense from the fact that acquiring dominant (and dry) centers at ultra-low yield could prove to provide difficult return situation in the long term. Further, shopping centers in Europe that are only accessible by car are considered the long term losers as such public transport (metro/train) access is a must.
These are just a few of the valuable takeaways of another successful event, but of course, nothing beats being there to experience it yourself: in the hustle and bustle of NYC, we have crafted a conference in true boutique style with mostly one on one's but also a few small group meetings in the iconic Plaza Hotel. This blog is too short for a full download of all the details we learned, so if you would like to hear more about our NYC conference, please give us a call. Feel free to check out the video below to get a better idea on what the conference is all about.
Interview Nikolaas Henket, CEO Kempen USA
This article was originally posted on LinkedIn.