European Sale-Leaseback: A Timely, Strategic Opportunity in Europe

This paper, the third in our series, explores why European Sale and Leaseback (SLB) investments are especially compelling at this point in the economic cycle. With appealing day-one income yields, a strong deal pipeline, and a favourable macroeconomic environment, we believe European SLBs offer an attractive opportunity for investors.

Corporates are looking to unlock cash equity from their real estate assets at a time when access to traditional financing is expensive and selective. The latest Eurozone lending survey reveals that banks further tightened credit standards for loans in the second quarter of 2024. While the rate of tightening has slowed, the cumulative effect over the past two years has been significant, leading to a near-stagnation in corporate lending growth, which was just 0.8% year-on-year in August 2024. Meanwhile, the cost of borrowing for new loans to non-financial corporations in the Eurozone remains historically high, hovering above 5%.

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Supporting documents

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