Schroders Capital is keen to capitalise on market opportunities now that trading conditions and pricing levels have improved, the firm’s head of real estate for Switzerland, Roger Henning, said at Expo Real.
‘We've seen a stabilisation in valuations, and interest rates are starting to decline. This, combined with increasing confidence in the transaction market, suggests a more favourable environment for our business,’ he told PropertyEU.
‘The timing is right for new investments,’ he added, especially compared to the market conditions in 2020. ‘While there are still some uncertainties, particularly in terms of bank financing availability for certain property types, we remain confident in the overall outlook.’
Henning said Schroders had several deals in the pipeline in Continental Europe, including a major transaction in Switzerland. He expects a strong year for investments, with even more activity on the cards for 2025.
‘We're actively exploring opportunities in logistics, data centres, and residential real estate,’ Henning said. ‘We recently closed a deal for a senior living home in the Netherlands and plan to expand our investments in this sector.’
Hotels are another high conviction sector: with around 60 hotels valued at a total €3 bn, Schroders is one of the top five investors in this segment in Europe. Henning pointed out that the hotel industry has shown remarkable resilience, with occupancy rates rebounding strongly, even surpassing pre-pandemic levels in some cities like Amsterdam.
Despite Germany's economic woes, Schroders remains confident in the Munich market, Henning said. The company also has significant investments in Berlin, including a large mixed-use development, valued at over €100 mln, that is nearing approval.
However, he acknowledged that the development landscape in Germany remains challenging. ‘Rising costs and financing difficulties have forced many developers to close their businesses. However, we're targeting a different client base, including family offices,’ he said, adding that Schroders’ strong heritage and family-owned structure resonate well with family offices. ‘This shared family-centric approach can be a significant advantage when building relationships.’
Regarding the mood at Expo Real, Henning said it was ‘more optimistic’ than last year. ‘While there are fewer attendees and exhibitors, including some major players, the overall atmosphere is positive. Many people believe that the market is starting to recover.’
