Marcus Phayre-Mudge, head of European property equities at Thames River Capital, highlights which sectors are providing the best opportunities for investors.
Pan European property shares returned +27.3% in 2012, over 800bps ahead of the EuroStoxx600 which returned +18.9%, whilst the FTSE All Share had an even more modest total return of +12.9%. What did savvy investors spot in this previously much maligned pocket of the equity market and can it continue in 2013? Quite simply, investors have picked up on a number of key collective characteristics of the property equity sector. These include the high quality of the underlying real estate (and the income derived from it); the ‘rightsizing’ of the vast majority of balance sheets through equity...
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