LONDON (Reuters) - European real estate companies are set to consolidate as greater transparency in the industry and easy access to credit create opportunities for growth, a top property investment banker said on Tuesday.
"I think there will be corporate consolidation," Credit Suisse Chairman for European Real Estate, Ian Marcus, said at the Reuters Real Estate Summit in London.
"We know there is no problem accessing capital and therefore I think there will be consolidation in the sector across Europe, and because the UK is by far and away the largest listed sector in Europe we will see further consolidation in the UK," he added.
He noted interest from private equity firms that typically avoided real estate investments, adding that the record $39 billion acquisition -- including debt -- of Equity Office Properties Trust EOP.N by buyout firm Blackstone Group earlier this year in the United States proved that "scale is not a constraint."
Lack of transparency and the high percentage of companies run and owned by founders or their families had previously hindered merger activity in Europe, the banker said.
He pointed out that the five British property firms in the FTSE 100 index .FTSE of leading UK shares had all changed their management in the last 2 years.
"The new professional managers are very different in their attitude and styles and will be more pragmatic....so maybe that is a catalyst to change as well," he said.
(See www.reutersrealestate.com for the new global service for real estate professionals from Reuters).
© Thomson Reuters 2009. All rights reserved.
| Health | Nov 09 - 12, 2009 | Health |
| Autos | Nov 02 - 4, 2009 | Autos |
| Middle East Investment | Oct 26 - 28, 2009 | Country Summits |
| Washington | Oct 19 - 21, 2009 | Country Summits |
| Global Wealth Management | Oct 05 - 7, 2009 | Financial Services / Exchanges |
