Raising capital from corporate real estate 2024
Total corporate disposals in EMEA in 2024 raised €15.7 billion. This is a 10% fall in activity from 2023 however, there is evidence in a number of sectors of improving momentum and the development of a number of themes that will build through 2025.
- Tom Mundy
- Hannah Dwyer
At a headline level, corporate capital markets transactions are struggling to build on 2024, reflecting the broader challenges for European economic growth, and volatility in debt market which has held back M&A activity.
At a sector level, there are pockets in growth which reflect the modest recovery in the European commercial real estate market. Offices (+3%), retail (+8%) and industrial assets (+4%) all improved in 2024.
Many of the drivers behind corporate real estate disposals in 2024 were evident in previous years; Private Equity is active in grocery anchored retail specialist manufacturing sectors. Headwinds remain for the office sector reflecting uncertainty in pricing levels. The relative lack of interest in forward-funded deals continues despite an improvement in overall lending rates.
At the same time, we see several themes developing through 2025; There is continued pressure on the European automotive sector which will be compounded by US tariff pressures. Grocery and convenience retail continues to feature strongly - a sector which is increasingly back in focus with investors. Finally, in our view corporate acquisitions in Japan by private equity groups looking to release real estate income will bring attention to Europe for groups looking to do the same.
