Office Real Estate outlook
Real Estate
Kolytics’ report assesses the rapidly evolving office real estate sector, where shifts in work preferences and economic softness weigh on demand. While US markets face oversupply and high capital requirements, European markets benefit from lower vacancy and more stable fundamentals. Deep discounts to replacement cost offer selective opportunities, but investors must be wary of capex traps and polarising tenant demand. In a fragmented landscape, landlords who adapt quickly and investors who stay selective will be best positioned to capture risk-adjusted upside. Buy-rated stocks include BXP, Castellum, Covivio and PSP Swiss Property. Sells include British Land, Inmobiliaria Colonial and Mobimo.
Edition: 213
- 13 June, 2025
Real Estate
A monster disposal? According to React News, a Green Street news publication, BLND is about to agree terms for the sale of a 75% stake in its Paddington Central holding (London’s West End) to Singapore’s sovereign wealth fund GIC. Pricing of “just over £800m” implies a c.£1.1bn value (~£1,150/sf; est. 4% EPRA NIY), in line with Green Street’s spot valuation est. of the c.1m sf inner London estate. While selling a stake in Paddington would be a win for shareholders, deleveraging is not on the cards as BLND has several external growth ambitions…
Edition: 117
- 20 August, 2021