By Tom Leahy on February 12th, 2020
The ranking of the largest buyers of European commercial property in 2019 shows no surprise at the number one position, but reveals a new dominance of one country’s players, as well as the debut of a South Korean investor.
Blackstone was the biggest buyer, just as it was for six of the previous nine years, based on deals recorded by Real Capital Analytics. A big chunk of the spending was via the multibillion-euro acquisition of Dream Global REIT, comprising a portfolio of some 230 office and industrial assets. Blackstone’s enormous fundraising operation and their investors’ appetite for commercial property means the firm has a huge drive for scale. As such, more than 90% of their acquisitions were through portfolio and entity-level deals.
Six of the top 10 investors in 2019 were headquartered in Germany. This emphasizes the weight of German equity that is being dedicated to commercial real estate and also ties in with the fact that 2019 was a record year for Germany, with more than €75 billion invested for the first time.
The standout on the list is Seoul-based Hana Financial. This is the first time a South Korean company has featured in the list of top 10 property investors in Europe. South Korean investors as a group spent more than €12 billion in Europe last year, making them the second biggest non-European source of capital after the U.S. The majority of capital has been deployed via joint ventures with other South Korean investors or a local partner.
Beatrice Ginieis provided data analysis for this article.
Rankings of the top buyers, sellers and deals in Europe appears in every edition of Europe Capital Trends. If you are a current RCA subscriber log into your account to download the current report from the RCA website.
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