PM Capital have identified what they are calling a unique and rare opportunity to generate returns from European property
PM Capital have identified what they are calling a unique and rare opportunity to generate returns from European property. The Fund Manager has deployed capital into a number of new real estate companies buying select European commercial real estate and residential property. Portfolio Manager John Whelan says supply restrictions and distressed asset sales have allowed savvy management teams to buy discounted property in A Grade locations. Prices in some cases are 60% off their highs and offer attractive yields of up to 8% plus the likelihood of capital appreciation. Whelan says the supply side response has been muted as prices remain below replacement cost and many developers have gone out of business. PM Capital invested in recent listings of Hispania, LAR Espana, Kennedy Wilson Europe and Hibernia. The booksbuilds are understood to have been up to 3x over-subscribed with stocks now trading at a 5%-10% premiums to their listing prices.
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