Global capital is focused on Europe

Audrey Klein, managing director International Institutional Clients, Corestate, told The Real Estate Day that as the US has become more expensive many Asian investors have turned their attention to Europe.

The good news is that global capital is firmly focused on Europe, according to Corestate, and is targeting both primary and secondary markets.

Audrey Klein, managing director International Institutional Clients, Corestate, told The Real Estate Day that as the US has become more expensive many Asian investors have turned their attention to Europe.

‘I have spent a long time in Asia and investors are actually pulling back from the US because of the currency charge, – she said. – A lot of Asian investors have started focusing on Europe, mainly the major markets. But some who started investing years ago are now over-allocated in the main markets, so they are also looking at secondary markets like Holland, Austria, the Nordics and even Switzerland’.

Corestate, a €26 bn company, has hit the ground running this year, announcing acquisitions and attracting clients. The group has focused on inorganic growth with the purchase of CRM, a top UK student housing operator, from a group of private investors for €17 mln.

The acquisition of CRM, which offers 23,000 beds in 145 locations, increases Corestate’s managed assets by €3 bn and the number of beds in its micro-living segment to over 30,000.

Corestate has also expanded its micro-living offering to include co-living by joining forces with Medici Living to create a €1 bn venture. It has entered into a partnership with Medici to build a co-living portfolio worth €1 bn across Europe within five years.

Corestate will identify, acquire and develop for its clients the right sites and properties, focusing mainly on the German-speaking countries, Spain and Eastern Europe,  and has several properties already in the pipeline. 

‘I am focused on bringing investors into our serviced apartments and student accommodation portfolios’, Klein said. ‘These asset classes are really interesting for investors in the market right now. A lot of investors are turning to these asset classes for yield, but that makes me nervous because they are heavy on the operational component, so if you don’t  know what you are doing you can run into trouble’.