European investors shift attention to industrial & logistics real estate in 2012

Investors in Europe have shown a clear shift in sentiment in favour of industrial and logistics property in 2012, according to new research by global property adviser CBRE.

Launched today at MIPIM 2012 - the property industry’s annual trade show held in Cannes, France - CBRE’s latest ‘Real Estate Investor Intentions’ survey*, completed by more than 340 leading property investors, provides high level insights into investor sentiment towards global real estate markets and forecasts activity for the year ahead.

The survey reveals that 20% of investors said industrial and logistics is the most attractive sector for purchases in 2012 compared to 13%in 2011. This increase translates to the sector attracting the greatest growth in appetite since last year’s survey across all property asset classes and this trend is set to continue into 2012, driven by the sector’s attractive income returns and resulting defensive characteristics in uncertain economic conditions.

The UK is the most attractive market in which to purchase industrial and logistics property with the sector being a particularly active one in the UK. In 2011, overseas investors were the most active group in the UK property sector, accounting for 45% of all industrial sales, a figure boosted by Blackstone’s purchase of both the Triangle and Teal portfolios for £479 million. Investors are also intending to target industrial and logistics acquisitions in Germany in 2012, reflecting the influence of the strong economic performance in Germany as a driver of real estate investment opportunities.

Figure Investors Intentions SurveyFigure Investors Intentions Survey