Dewi Habraken, Senior Director – Corporate Services, John Collins, Senior Director – Fund Services, and Vincent van den Brink, Commercial Director, recently attended EXPO REAL (EXPO) in Munich.
Being the biggest trade fair for property investment in Europe, EXPO gathers the most influential property players from all sectors.
As to be expected, this year’s event was a huge success and some of the key reoccurring themes discussed by the majority of attendees were as follows:
- The next six months are expected be quiet in the real estate (RE) space, with minimal transactions taking place
- Valuations: How will the upcoming revaluations at year-end affect the loan-to-value (LTV) ratios and will they have a knock-on effect triggering defaults, or restructuring events?
- There is plenty of dry powder out there waiting to be allocated
- Distressed assets are an opportunity for cash-rich investors
John Collins said:
“The general consensus amongst many of the industry participants at the event is that activity will be quiet over the next six months with many recent transactions already being shelved. However, once assets have been revalued, movement is to be expected.”
Dewi Habraken commented:
“The LTV ratios on any debt may step out of acceptable bandwidths once revaluations happen at year-end, which may trigger refinancing and restructuring events. In addition, new opportunities in the form of distressed assets are expected to appear.”
Vincent van den Brink said:
“Most recently, we have seen various default/restructuring events occurring in the market. There has also been a noticeable amount of dry powder within the industry, which I expect to be allocated in Q1/Q2 when value opportunities present themselves.”