European listed property stocks suffered major losses last month, according to the latest market update issued by Global Property Research. The GPR 250 Europe Index' total return performance was clearly negative at -9.1%. For the first half of 2007, the performance was even lower at -10.6%, making Europe the worst performing continent in 2007. The best performing countries in June were Denmark (Keops A/S, +11.8%), Poland (GTC; -1.2%), Switzerland (-2.4%) and Spain (Metrovacesa; -2,6%). The worst performing countries last month were Italy (-17,1%), Finland (-16,1%), Sweden (-16%) and Greece (Babis Vovos I.C.; -13.6%).
European listed property stocks suffered major losses last month, according to the latest market update issued by Global Property Research. The GPR 250 Europe Index' total return performance was clearly negative at -9.1%. For the first half of 2007, the performance was even lower at -10.6%, making Europe the worst performing continent in 2007. The best performing countries in June were Denmark (Keops A/S, +11.8%), Poland (GTC; -1.2%), Switzerland (-2.4%) and Spain (Metrovacesa; -2,6%). The worst performing countries last month were Italy (-17,1%), Finland (-16,1%), Sweden (-16%) and Greece (Babis Vovos I.C.; -13.6%).
All sectors posted losses in the first half, ranging from -8.5% for retail, -9.1% for diversified, -11.4% for residential and -11.8% for industrial. Not surprisingly, European listed property stocks underperformed general equities but also bonds by 8.4% and 8.6% respectively.
Several European property companies were planning to start trading in June 2007. However, only Banimmo Real Estate (Belgium) and Realia Business (Spain) were floated last month and now both property companies are trading below their Initial Public Offering prices. Other IPOs were postponed, including Shurgard Self Storage Europe Limited (Belgium), Boetzelen Real Estate (Germany), Uni-Invest (Netherlands) and Vector Hospitality (UK) and may even be cancelled. ECO Business-Immobilien raised only EUR 100 mln in a capital increase, less than the originally planned EUR 320 mln, after selling 9.1 million shares priced at EUR 11.00 each.