OUTLOOK BRIEFING: SEB gives the thumbs-up to logistics

The logistics market is set to become one of the best performers in Europe in terms of asset classes, according to Nils Hübener, head of investment at SEB Investment.

Speaking at a recent Outlook Briefing held by PropertyEU at the Paris office of law firm Taylor Wessing, Hübener said he was a big fan of logistics. ‘There’s clearly an underlying trend that is strengthening the European logistics market, and that is not only being led by the change in the retail environment. We also see a lot of catch-up growth in Central Europe so there’s potential for further growth on the logistics side as well.’

LOCATIONS
In terms of occupational markets and what is driving different real estate sectors, significant differences exist across Europe, Hübener said. ‘Going from east to west in Central Europe, we see more of a catch-up situation in some markets although we have a huge pipeline of offices coming through in Warsaw. That’s going to be a tough sector in that country. But there are other markets in Central Europe which could be pretty good performers if and when the economy improves and will go back into pickup or catch-up mode.’

In terms of cities, Hübener favours those with medium-term potential like Berlin. ‘We are a strong owner of offices in Berlin and we still think this asset class is internationally cheap in terms of rent, if not in yield terms. We still have the best of Berlin offices priced at €260 per m2 a year and we see medium-term potential in that level.’

Dephine Benchetrit, partner at Finae Advisors, also sees growing interest in logistics in her home market France. While the bulk of international investors in France focus on offices, interest in logistics assets is rising, she told the Briefing. ‘I think this sector will become pretty active in the next few months. We don’t see much interest in residential, but retail will always be of interest to a certain type of investors.’

CLICK HERE for all the videos from PropertyEU's Outlook Briefing