European real estate investment manager Europa Capital saw transaction activity return to pre-pandemic levels in 2021 with a total of €1.4 bn transacted in the year, compared to €500 mln a year earlier. Acquisitions were secured across the risk spectrum on behalf of its value add and core funds.
The living and logistics sectors accounted for almost 80% of total transactions, reflecting Europa Capital’s conviction in the continuation of urbanisation trends across Europe fuelling the need for increased amounts of living and logistics space.
A contrarian view on the future of the office following the dislocation of the pandemic, saw the remainder of the investment deployed into well located office assets on behalf of its latest value add fund. Europa Capital believes there will remain long term demand for the right stock in the office market.
The Europa Diversified Income Fund (“EDIF”), Europa Capital’s pan-European core fund, delivered a strong 8% net total return for its investors in 2021. Since its inception in late 2018, EDIF has consistently delivered top decile total return outperformance to market indices, which has been driven by capitalising on its inhouse expertise in living and logistics, as well as its proactive approach to active asset management.
Jason Oram, executive committee member of Europa Capital, commented: ‘Our successes in 2021 have demonstrated our ability to deliver real estate investment strategies for our clients across a diverse mix of investment products, despite the challenges of the pandemic. We are also pleased to have welcomed new clients into both our value-add and core funds during the year, whilst continuing to strengthen relationships with our existing investors.’
