CBRE's sale-and-leaseback pipeline doubles in 2009

Corporate sale-and-leaseback transactions have maintained a prominent role in the European property investment market despite the downturn, according to a new report by CB Richard Ellis.

In the first half of 2009, an exceptionally quiet period for investment turnover, EUR 4.1 bn in occupier disposals accounted for 17% of the European real estate investment market.

Following the emergence of the sale-and-leaseback model in Europe over the last few years - growing from 6% of the overall market in 2004 to 19% in 2008 - sale-and-leaseback deals have established themselves as a key and resilient part of the European property market, the report said.

John Wilson, head of Corporate Strategies within CBRE's Global Corporate Services business, said: 'The sale-and-leaseback market has continued to prosper despite investor caution because these transactions create long and well-secured income streams for the purchaser and often involve prime assets - precisely the kind of opportunities investors are looking for at the moment.'

'What we have also noticed is that these transactions are expanding across more countries and business sectors. We were working on around EUR 1.5 bn of deals in this area in mid-2008, and this has climbed to around EUR 3 bn this year,' he said.

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