Feature: HOUSING FIRST - bACK TO BASICS
High-rise hopes T
As Europe’s biggest residential landlords race to expand, their greatest challenges include finding institutional grade assets — and figuring out the social aspect. Isobel Lee reports
he residential investment scene witnessed major moves in 2021. In Europe, the two largest deals ever recorded in the sector created significant consolidation and underlined the huge appetite for the asset class. German listed giants Vonovia and Deutsche Wohnen finally concluded their long dance to create the largest housing group in Europe, with 500,000 apartments worth almost €90bn in three countries, and a market capitalisation of around €45bn. Meanwhile, in the private space, Nordic specialist Heimstaden Bostad acquired the entire Scandinavian and German portfolio of Akelius Residential Property for €9.1bn, to underline its pre-eminence in the sector. These megadeals — and plenty of other activity — ensured that total volumes in Europe reached a record peak in Q3 2021, overtaking offices as the biggest investment market. “In the past, investors never wanted to get involved with residential deals,” says Marc Bertrand, CEO of Amundi Immobilier. “It was seen as a complicated B2C business, expensive to manage. But investors have rediscovered that this asset class provides steady income, and is highly resilient. In a very depressed yield environment, it is no longer a significant sacrifice to have a 2-3% net cash yield.” Amundi Immobilier, traditionally an office-focused investor, has expanded its horizons to include
Experienced residential investor Patrizia recently acquired a state-of-the-art apartment tower in Helsinki, Finland
MIPIM PREVIEW • 25 • February 2022 MIPIM_Housing_Office_+D_+S.indd 1
02/02/2022 09:47
