Three years ago, Morgan Stanley was the biggest single buyer of German commercial real estate in the entire country. The investment bank spent over €10bn in 2007, swooping in to scoop up Germany’s most visible and prestigious office buildings, partnering in syndications and joint ventures, teaming up with asset managers to profit across the whole value chain – and to enlighten the slow-witted Germans, who just didn’t seem to ‘get it’ – that is, ‘get’ the whole real estate thing.
I’d always been baffled by the German phrase “Eule nach Athen tragen”. Its English equivalent, “Carrying Coals to Newcastle” is self-explanatory, given the mining traditions of that hard-bitten northern English town. But owls to Athens? As it happens, the Greek capital did have a large owl population in its day, even meriting a reference by local [...]
In one of the livelier presentations at the recent CIMMIT Conference in Frankfurt, the head of Jones Lang LaSalle’s German operations Andreas Quint told the assembled throng of real estate professionals that investment flows are again concentrating on the largest economies. Germany will profit disproportionately from the interest of foreign investors, he declared. The basic thrust of his premise [...]
We are uncomfortable, too, with the now widely accepted notion that, since the wave of distressed selling in Germany has been conspicuous by its absence, it no longer poses an immediate threat. No, not an immediate threat, perhaps. But the pernicious nature of the current market serves to hide a multitude of deceits, whose effects are debilitating rather than instantaneous. Headline-grabbing announcements of new financing deals provide some distraction from the cold reality being experienced at the coal face of property investment by those with their own skin in the game.
To paraphrase Goebbels, to whom the quote is often attributed in a different context, when I hear the word Sustainability, I reach for my revolver.
Posted on 10 February 2010
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Posted on 26 December 2009
REFIRE-AMERICAS publishes and broadcasts articles, interviews, commentary, and blogs of significant interest to professionals and business looking to monitor new initiatives and trends, and stay ahead of the market. Get in touch with Barbara Spohn or Ian Cameron at www.refire-americas.com Continue Reading