Germany has ‘gone to the bottom of the pile’ as an investment destination for Alistair Calvert, CEO of Gramercy Europe, the asset manager focused on single tenant logistics and light industrial properties across the Continent.
‘The cost per square meter has reached a point hich we don’t think is sustainable,’ Calvert told PropertyEU. ‘While France, which used to be quite a minor market, has become the biggest part of our fund.’
According to Calvert, the Gramercy Property Europe III fund is being invested ‘quicker than predicted’, with 50% already committed and another 20% of deals lined up.
‘We need to raise a new fund towards the end of the year, which we don’t think will be any problem, given our track record and the desire for people to get into logistics.’
However, the current popularity of logistics among the global investment community has a downside, he noted. ‘Investing in logistics is nowhere near as much fun as it was a few years ago, but we do believe that we’re starting to see real rental growth across the markets which could influence the sector.’
Calvert compared the booming climate to pre-crisis Europe. ‘We’re definitely not calling time on the market, but it does feel a lot like 2006,’ he said. ‘Every time we go and try to find a transaction, there’s a feeling that you’re going to have to work a lot harder to secure the right deal.’
