Europa Capital’s current sector of choice is residential and not just the private rented sector. The company has recently acquired a senior living asset near Copenhagen for a value-add fund, for instance.
“I think that’s a sector that is really moving up the priority list, even for core investors who are under pressure to produce more return than regular residential or regular logistics can give these days,” said Europa Capital partner Andy Watson.
Although Europa Capital has done deals in both Berlin and Copenhagen recently, Watson said that asset selection is less a case of geography and more a case of finding a good local partner in these sectors.
Meanwhile, he said that retail assets are still “challenged” and the sector is more of a value-add play. But while covid-insecure assets are the worst off, grocery retail has been relatively unscathed. Retail parks, particularly if they are food anchored can also be interesting Watson told Real Asset Insight’s Richard Betts.