Osborne Clarke’s Real Estate and Infrastructure BD Manager reports back from MIPIM, which this year feels re-energised and busy with a strong positive sentiment across the market.
Discussions have been around the amount of money in the market, from the banks returning to healthy lending ratios, continued access to alternative financing and large amounts on international capital. This MIPIM is not about finding funding but realising value in a market where stock is scarce or over priced.
PRS remains a theme and feels as though it is gaining momentum from discussions to reality.
Student Accommodation is still an asset class that people want to discuss as it matures from alternative asset to a tradeable and interesting class. The downside is sites are becoming scarcer and more expensive. There is plenty of discussion about what next…consolidation or diversification, perhaps PRS by student housing providers?
Logistics and warehousing is the unglamorous darling here. As retail and distribution change to meet consumer demand so do logistics. Ever bigger sheds and strategies are on the cards and some see consolidation to come.
Technology is impacting development and organisations are now insisting on sustainable design and a number of services businesses were exhibiting and hosting events.
Finally that May election won’t go away! Everyone has a view on what impact this will have on transaction volumes but no one is sure of the outcome. A minority government is certain but how will that play out? How long will it take to settle? Will there have to be a second election this year? And how will it all affect confidence?