Davide Albertini Petroni (Risanamento) uncertainty around Grexit, UK referendum, Russia, their affect on European real estate…

Davide Albertini Petroni

Investments into Europe remain strong, despite the drama of a Grexit, UK referendum, Russia. How much bearing will such uncertainties have on real estate activities in Europe going forward?Generally, uncertainty is the investors’ foe and makes them nervous. The quantitative easing programme made by ECB, seems to reduce the risks of the geopolitical turmoil, contributing to the short – term interest rates  close to zero and a weak euro currency.

helping to awash with capital the Eurozone. Then, Europe is home to a diversified range of markets and cities and European domestic demand remains high boosted by an improving purchase power and an increasing bank lending. I don’ t see a relevant impact on real estate sector.

There is also the end of the lose money looming. How does that eventuality impact your investment strategy?

We as a company have an investment strategy being geographically focused and in the longer term, therefore not affected by the current events.

Only a few see a property bubble in Europe? Where do you stand?

The stock market volatility, the fears of a deflation and a limited economy growth push to a stronger demand for properties, due to its relative high yield and risk profile. All the more, the shortage of core assets should make the investors worried.

UK and Germany are investment magnets. Which other markets hold the best opportunities at the moment in your view?

Demand for core assets in primary markets remains significant , albeit the yield compression, but the investors are focusing on value add opportunities in second tier markets and cities, embracing more risks just to seek higher returns. Southern markets, notably Spain and Italy, lead the up turn this year with volumes up an estimated 40%.

Exit Strategies, Raising funds, identifying product, finding the right partners – What is your biggest challenge?

We are developer and therefore identifying right products for the future real estate market and finding the right partners to carry on the projects remain our biggest challenge.

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Join Davide at the upcoming GRI Europe Summit in Paris on 10-11 September to further discuss these topics, and more, amongst fellow investors, developers, property companies and lenders.

To see who’s participating and more topics of discussions, visit: www.globalrealestate.org/europe2015

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