Car parks: real asset’s rough diamond

 
 
Car parks offer investors a great deal: proven resilience and an attractive risk-return profile. They also appear to be future-proof as they will facilitate decarbonisation by providing EV-charging facilities and increasingly act as inner-city hubs.

Nowadays, car parks are highly appreciated by investors because of the proven track record of this asset class which had previously been overlooked by the institutional investment world for a long time. This has gradually evolved over the last decade as more and more investors recognise the unique qualities and attractive risk-return profile in this asset class.

Urbanisation is an ongoing trend in Europe that puts a great deal of pressure on the quality of public space and inner-city life resulting in the rapid reduction of on-street parking. Car parks are critical in facilitating this reduction by freeing up street space. In addition, the volume of passenger vehicles is forecast to rise.

Our Parking Team has written an article about the car park investment market.
Read full article here.

 

Hidden pearls of the south

 
 
As the fifth largest residential market in Europe, Spain is still facing the phenomenon that the bulk of international investors focus on the metropolitan areas of Madrid and Barcelona. In many other Spanish cities the lack of available BTR apartments is dramatic. It would therefore be worthwhile to take a look at some of these hidden pearls in the south.

Albacete is the capital of the province by the same name. It is the economic headquarters of the autonomous community Castilla-La Mancha. With its 175,000 inhabitants, the city boasts five major commercial areas in the immediate outskirts for tens of thousands of employees. In addition, Airbus runs a manufacturing and maintenance plant for the Eurocopter and the capacity and staff will most likely be doubled over the next few years. A NATO air force base has stationed some 3,000 soldiers on the outskirts of the city.

A great deal more has been planned, such as major international high-tech companies and mega-players in international logistics. Last, but not least, the impressive project of a puerto seco (dry harbour) as a logistics platform, will be subsidized by the government of Castilla-La Mancha with an investment of EUR 50 million. In three years’ time more than 100,000 grain containers will travel by train from the railway station in Albacete to its destination in Valencia. Albacete’s railway station also accommodates the AVE high-speed train, making it is easy to reach destinations like Madrid in the time that it takes to play a game of football.

Peter Renk, Head of Residential and Country Manager Germany has written an article about the Spanish residential market. Read full article here.

Source picture Albacete: https://rare-gallery.com/thumbs/735901-Castilla-Albacete-Spain-Houses.jpg

 

Robin Marriott of PropertyEU interviews Frank Noé about digital communication infrastructure

 
 
Article in PropertyEU by Robin Marriott in the Alternative Watch edition- Digital Infrastructure communication – interview with Frank Noé of Primevest Capital Partners.

When real estate investors think of digital communication infrastructure perhaps the first images that come to mind are of those mobile telecom masts and data centres. However, outside this sphere, is a third category of digital infrastructure which seems to get relatively less attention.

Given the important part fibre cables play in digital infrastructure, it is surprising it is not spoken more of. As the internet grows ever more powerful fuelling business growth and personal leisure time, you would think investors in real estate assets could not afford to overlook returns from the development of the fibre network. Fibre optic cables have been around for decades, so they are not new. They are preferred to copper networks for being relatively inexpensive in comparison, and for being better at carrying signals for longer distances, while also cutting electromagnetic interference.

Perhaps it is unsurprising that very few real estate companies have a specialization in fibre cabling. After all, it does not sound like a real estate business. But one that does is Primevest Capital Partners, the Netherlands-based company which has a digital infrastructure business alongside carparks and residential property. The company launched its first Communication Infrastructure Fund in 2017 giving it a “first mover” advantage and, is launching a second fund that aims to amass up between €800mln – €1bn of assets. Primevest is involved in the “passive” layer of fibre cables meaning “all” it does is identify areas of demand, gains the necessary permissions, employs contractors to dig up the ground to lay the cable, and rents it out to an operator such as Vodafone, Deutsche Telekom or NKL on long term leases.

Frank Noé, Head of Capital Formation at the group, says: ‘Fibre optic cable is the backbone of our future economies, the backbone of growth, and decent work environments, and the very information society that the EU is striving for.’

Read full interview (for subscribers): https://lnkd.in/eKreyEpm

 

Article IPE Real Assets: Investment opportunities in communication infrastructure

 
 
Investment opportunities in communication infrastructure: digital connectivity and infrastructure are key to innovation & education. The growing need for fast broadband ‘connectivity’ in society and the economy requires a reliable, affordable, energy efficient and scalable state-of-the art communications infrastructure network.

To accommodate this, considerable investments are needed to expand and upgrade today’s communication infrastructure network. This opens up an attractive new asset class for institutional investors: passive telecommunications infrastructure assets – such as fixed-line cabling, mobile towers and data centers. An article by Primevest Capital Partners, a pan-European investment boutique with more than €3 billion AuM specialising in innovative real assets and already active in this field with the ‘Primevest Communication Infrastructure Fund I’ (PCIF) and PCIF II to be launched in April 2022, outlines the communication industry’s investment challenge and the window of opportunity it offers to institutional investors.

Long investment horizons
These communication infrastructure assets have lifecycles and utility-like characteristics with long investment horizons and can offer modest but reliable cash returns to institutional investors, backed by long-term lease contracts with telecom operators. Moreover, by introducing private capital to the world of communication infrastructure, institutional investors can play a vital role in the development of the ‘digital economy’, thus delivering important economic and social benefits. However, investing in cable infrastructure nowadays effectively means putting one’s money on one specific infrastructure asset: fibre-optics. That might seem a risky thing to do in an era of fast technological change and ‘disruption’, even if the exposure to technological developments is limited for institutional investors because they would not be investing in the telecom operators themselves. Can institutional investors invest in passive telecommunication infrastructure in the confidence that fibre-optic assets have the ‘longevity’ that not only provides investors with an attractive cash return during the lease term, but also maintains or even grows long-term capital value? Primevest explains that such confidence would be justified: fibre-optic.

Read full article here.

Primevest Capital Partners also has a White Paper available about this topic. If you would like to receive this extended version please send an inquiry to lisette.vanderham@primevestcp.com

 

Keynote Smart cities by Heimen Visser at Real Estate Future Proof conference

 
 
The online conference Real Estate Future Proof took place on Tuesday 30 June. Heimen Visser of  Primevest Capital Partners gave a Keynote on the following topic: "Objects in public spaces, homes and office buildings, everything is digitally connected to each other."

The government’s Digital Agenda stimulates the roll-out of fiber optic connections to the 5G mobile internet; all this has an impact on autonomous driving, real-time information exchange, smart parking garages that generate energy and become transit hubs in cities, but also the narrowing of street lights by applying fine dust, temperature and traffic measurement sensors to improve the living and working climate in cities.

Heimen Visser sketches the beginning of a smart future in about 10 minutes.
See the full video here: https://www.youtube.com/watch?v=RqV27wdKinU&feature=youtu.be&t=1410

 

Article PropertyEU: Finding a space in the car parking sector

 
 
Although car parks are likely to remain a specialist asset class due to liquidity issues, the sector’s long-term potential is accelerating. With car ownership in Europe on the wane, and the continent’s leading cities increasingly driving private vehicles out of town with green policies, the investment case for car parks might seem to be dwindling.

Yet with industry insiders calculating that around half a billion of standalone, investment-grade assets were traded in the sector in 2019, nearly twice the figure for 2018, it is apparent that investor demand is on the rise. Furthermore, the latest state-driven sustainability initiatives – plus the rising value of prime, down-town land in Europe’s leading cities – may actually be boosting the relevance of parking facilities, according to Primevest Capital Partners, one of Europe’s leading car park investors.

BY ISOBEL LEE

Read full article: Article PropertyEU