Investor attention in purpose-built student accommodation (“PBSA”) has understandably centered on the underlying real estate, given the sector’s strong performance. Yet PBSA is, at its core, an operating business wrapped in real estate.
There are estimated to be more than 5,000 institutional-grade retail parks across Europe, representing an investible universe approaching €100 billion. By any measure, this is a significant real estate sector.
The bottom of the cycle, when capital values have rebased and market recovery is evident, can be the best time to enter the real estate market as an investor. This is particularly the case for direct investors.