Opinion Pieces, News
14th Dec, 2022
Private Equity Real Estate (PERE) Spotlight Podcast: Managing risk in a risk-off European residential real estate market
In a special episode of PERE’s ‘Spotlight’ podcast, Ellis Sher, Co-founder & CEO of Maslow Capital and Marc Fuhrmann, Principal, Head of Real Estate at Arrow Global, discuss the critical considerations when investing institutional capital into Europe’s housing market amid current uncertainty.
Tune in for valuable insights on how both organisations are navigating this market.
A short summary of the podcast can be found below:
- Banks are better capitalised than they were during the last financial crisis, which may help prevent the same level of distress seen in the past.
- Developers may need to be creative in order to make their projects work in the current market, such as deferring the point at which they commit to a general contractor and indexing contracts to inflation.
- Demand for finished products in the residential market has been surprisingly robust, with a high ratio of applicants to units and quick pre-sales agreements being signed at healthy prices.
- Lateral thinking is necessary for firms continuing to invest during this time of price dislocation. Separating market risk from execution and operational risks can help resolve cost issues.
You can find the full PERE coverage here