I believe that although real estate as such is a mid to long term type of investment, we will remain for the coming several years in situations where deals can break at the last moment, as final decisions (IC or other) are done only at the last moment. No decision process is a mere admin process.
In this period, although we do a see a high recovery for RE appetite, the saying that the deal is only done when signed and sealed (and paid) cannot be more true.
There is also the end of the lose money looming. How does that eventuality impact your investment strategy?
I do not think that there is an end looming only with the turbulence it is becomes more or less selective, but will remain relatively cheap. So the strategy is to invest in dominant schemes.
Only a few see a property bubble in Europe? Where do you stand?
I stand with the “few”
UK and Germany are investment magnets. Which other markets hold the best opportunities at the moment in your view?
I am bias, but I strongly believe in CEE, I feel the cap rate gap is much wider than the risk attached especially in Czech and Poland that show robust economies.
Exit Strategies, Raising funds, identifying product, finding the right partners – What is your biggest challenge?
Challenges are the macro turbulence, and how this can affect individuals that are making decisions, at every level of a project’s process (Financing/ tenants/ other). I believe a person can expect surprises at any moment, but unlike the 2008-2010 period, you do then find alternatives .
Therefore it is times where a person should continuously have a plan B.
Join Omar 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.