VIDEO: Private investors set to go after bigger targets in European real estate

Brazil’s richest banker Joseph Safra heralded a new chapter for private investor activity in European real estate when he outbid institutional capital late last year to acquire London´s iconic Gherkin tower. JLL's Matthew Richards expects more big deals like this from private investors over the next 12 months.

'The big change we will probably see during the course of 2015 is the continuing emergence and march of the private investor,' Richards told PropertyEU during a video interview.

'We have always had private investors within real estate because it's a tangible asset. But I think we will continue to see private investors moving up the scale in terms of the size of deals they will do. The Gherkin is a classic example, and by the end of 2015 it will not be the only transaction of that scale to be undertaken by a private investor.'

Richards, director at JLL's International Capital Group - Europe at JLL, was commenting following the release of JLL's latest data on global capital flows.

REGIONAL CAPITAL FLOWS
Asian investors will also continue to increase the range and volume of their acquisitions in European property. Richards: 'There will be greater activity from new sources of capital, whether that is the Taiwanese who we first saw active in London and beginning to spread across continental Europe, or increased activity from the Koreans who we saw very active at the end of last year, particularly in Germany.'

'There will also be a lot more activity from the Chinese who will continue to come to Europe in club joint ventures, direct acquisitions and investing in funds,' Richards said.

Saudi Arabia is becoming more prominent as a capital source from the Middle East, while the US and Canada continue to invest directly, through non-listed funds and other vehicles.

To hear more of what Matthew Richards has to say, watch the video interviews below

VIDEO INTERVIEW 1
Global Captal Flows - Outlook 2015
Arthur de Haast, lead director of International Capital Group at JLL, gives his view on the outlook for global capital flows and the likely impact on European real estate markets in an interview with PropertyEU.

VIDEO INTERVIEW 2
Capital sources and the growing role of private investors in 2015
Matthew Richards, director, International Capital Group - Europe at JLL, in an interview with PropertyEU, highlights the main sources of capital flowing into European real estate, including "the continuing march of the Asian investors" and the growing role of the private investor community.