Italy, Nordics and CEE Drive Property Investment in H1, Says CBRE

15th August 2018

Logistics BusinessItaly, Nordics and CEE Drive Property Investment in H1, Says CBRE

Italy, the Nordics and Core CEE have seen the highest H1 increase in investment levels while investment inflows from North America have surged by 27%, according to latest figures from CBRE.

European industrial and logistics investment remained strong during the last 12 months, the property specialist said. Investment volumes reached €31.3bn, down 21% from the 12 months to June 2017, but up 14% after discounting the hugely significant €12.25bn Logicor deal which took place in June last year. Volumes for the 1H18 were 8% higher YoY Logicor adjusted, although the 2Q18 did see a 12% fall from 1Q18.

The best performers were Italy, where adjusted 1H18 volumes more than doubled, the Nordics (43% higher) and Spain (up 8%). Core CEE also increased by 24%. The UK, the largest market, saw a 7% fall to €4.1bn and Germany was flat at €3.2bn.

Capital inflows into the European industrial sector reached €31bn in the 12 months to June 2018, a 22% fall YoY, but a 12% increase adjusted for Logicor in 2Q17. This was partly driven by the €2.4bn takeover of Gazeley by GLP in 4Q17, but inflows in the 1H18 alone were 5% higher at €14.4bn.

There was also a 7% increase in domestic volumes to €17bn and a 27% rise in North American inflows to €5.6bn. Inflows from Asia fell to €3.3bn in the past year, but adjusting for Logicor showed a 16% rise. European cross-border activity was also up 5%.

Mark Cartlich, Head of EMEA Industrial & Logistics Capital Markets Strategy comments:

“Investment was only lower in the first half of 2018 compared with last year before adjusting for Logicor, so the EMEA logistics sector remains strong and continues to generate substantial levels of interest. There was a significant rise in activity from North American investors, demonstrating confidence in the market on a global scale, while domestic and cross-border investment also increased. We expect interest in the sector to be maintained throughout the remainder of 2018 from both international and domestic investors.”