European logistics real estate markets have not suffered last year from the COVID-19 pandemic. Due to fast-growing e-commerce and higher inventory levels of producers, the total expected take-up in 11 European countries of 23.6 million sqm for 2020 is only 3% down compared with the record year 2019. The forecasts for this year are even better with an expected take-up of 27 million sqm – an increase of 14%. Particularly large logistics real estate markets like Germany, France, the Netherlands and Poland are expected to grow substantially.

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has successfully launched the first property fund that sets out to be compliant with the 2015 Paris Agreement, a landmark agreement that brought nations together to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low carbon future. 

Real estate services company Apleona, headquartered near Frankfurt am Main, has been acquired by French private-equity company PAI Partners (PAI). The seller is Swedish financial investor EQT. The transaction is subject to approval from the antitrust and regulatory approval.

Palmira Capital Partners, one of the leading sector specialists in European logistics and industrial properties, has launched the Palmira European Core Logistics Fund.

Invesco Real Estate, a global real estate investment manager, has launched the Invesco Real Estate European Living Fund, an open-ended fund investing in pan-European residential assets.

While in Poland over 20% of investors are favouring projects that have high ESG-related ratings (which is fourth highest figure globally), Hungary and the Czech Republic are the two countries with the highest share (over 40%) of respondents saying that ESG considerations play no role when they evaluate projects, according to the latest results of the RICS Global Commercial Property Monitor.

As part of a new climate strategy, one of the leading German asset managers is also targeting net-zero emission portfolio by 2050 – German investment manager KGAL has committed to becoming a climate-neutral company by the beginning of 2021 by offsetting all greenhouse gas emissions connected to its operations. Emissions calculated per employee will be reduced by 5% annually during the next 10 years. It has also pledged to have a net-zero emission investment portfolio by 2050. The targets are set out in the company’s newly announced climate strategy.

The 12-month rental outlook for both prime and secondary CBD offices is stable in Bucharest and Budapest and negative in Warsaw. In Prague, the outlook is negative for prime assets and stable for secondary assets. The vacancy rate is expected to increase over the coming year in all of the four capital cities. Occupier conditions are currently neutral across the region, with Bucharest and Budapest expected to become tenant markets over the next 12 months, according to Colliers International.

Across Europe, markets have stabilized as the impact of COVID-19 on logistics real estate has begun to dissipate, with strong investor demand for the sector driving yield compression. The rent growth outlook has become more positive as markets have steadied and supply-side constraints have remained intact, driven by low levels of speculative development in most continental European countries. Land scarcity is also affecting rent growth.  Prologis published its third-quarter global earnings announcement along with its European and Central European performance update.

There was a monumental €26 billion (£23.5 billion) investment into the European data centre sector for the first half of 2020, despite the impact of COVID-19, according to a report by Knight Frank in partnership with DC Byte. This is over four times the $5 billion annual average figure and a colossal increase on last year’s $2 billion investment volumes. Take-up in H1 2020 was also 50% higher year-on-year at 282MW.