As a sector, European logistics is central to considerations around sovereignty, supply chain dependence and the state of Europe’s industrial base. Because of this, it is relatively demand inelastic.
Investors in Asia are well-acquainted with real estate — especially in Singapore, where some of the world’s largest investors in the asset class are from. This familiarity with its advantages is reflected in the abundance of S-REITs — a good proxy for the depth of the domestic real estate market — which account for 10% and 12% of the total market capitalisation of the Singapore Exchange and are a significant contributor to local market equity.
Increasingly, however, investors in Asia are looking beyond their borders for opportunities to deploy capital and Europe is in view. Having been historically underallocated to the continent, the relatively solid performance and stability of Europe’s private markets stands in contrast to volatility in the US, drawing interest to what Europe — and European real estate — has to offer.
