Well-capitalized investors are finding opportunities amid the ongoing turbulence in the commercial real estate sector, according to Kathleen McCarthy, co-head of global real estate at Blackstone.
“When sentiment gets really negative, prices decouple from fundamental value,” McCarthy said in a Bloomberg Television interview. “We have a practice of trying to quieten that noise and look at the information in front of us.”
In an interview with Bloomberg Television, McCarthy acknowledged the high vacancy rates in US office markets and the impact of rising interest rates on property values in Europe, which have triggered a significant selloff in publicly traded real estate stocks and bonds. While investors anticipate price collapses, a standoff between buyers and sellers has delayed the full impact on asset values.
Blackstone, a leading global investment firm, has already invested roughly €3.5 billion ($3.8 billion) in Europe this year, according to Bloomberg. McCarthy explained that its focus lies on properties with strong potential for rental growth to offset higher borrowing costs. Sectors such as warehouses, student housing, and lab space are particularly attractive to Blackstone.
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Source: www.mpamag.com
ENB
Sandstone Group
