Speculative development in France is an attractive investment option, according to panelists at the PropertyEU France Investment Briefing in London in early July.
Speculative development in France is an attractive investment option, according to panelists at the PropertyEU France Investment Briefing in London in early July.
Given a theoretical EUR 500 mln to spend, Francois Rispe, MD and Regional Head of Southern Europe for US logistics group Prologis, said this would be his first option. ‘I would buy land due to the lack of development schemes for industrial space and offices.’
Olivier de Molliens, deputy CEO of Paris-based Colliers International Keops, is also a fan of speculative development. ‘This can be very attractive if the fundamentals are good.’ Real estate lending and mezzanine debt offer attractive margins as well, he added. ‘And I would invest in a CBD office for secure income.’
Investors looking for a secure investment should also consider residential in Paris, said Philippe Duvergne, managing director, real estate finance international, France at German lender Pbb Deutsche Pfandbriefbank. ‘But if I needed income, I would buy a 30,000m2 office in Bercy Est,’ he added.
Rispe pointed to the listed sector for a good income-producing office investment. ‘Unibail Rodamco and Gecina are the best bets, they have the most superior assets,’ he noted.
Jonathan Baines, head of central London investment at Colliers International, believes the TMT sector (technology, media and telecommunications) is a safe bet in Paris. ‘The generation Y wants to work closer to where they live. They want flexible offices. I would find a location to build a new Tech City just outside the city centre.’
