Former Pramerica, Invesco Real Estate Investors See European Double Dip
A co-founder of Internos Real Investors, a London-based real estate fund manager with nearly $2bn in assets, is predicting a double dip recession in Europe and naming pockets of property investment on the continent in a recent research report. Jos Short, former CEO of Pramerica's real estate private equity business, founded Internos in 2008 with Andew Thorton, former COO of Invesco real estate investments in Europe. In his Summer 2010 outlook Short says he can no longer write in terms such as there is "caution about economic times" saying that they strongly suspect "a second cyclical downturn in parts of Europe." "In 2-5 years time, which countries or perhaps which sectors in Europe will have been able to achieve real estate stability, even growth, through the feared dip?" Short asks in his decisive eye bulletin, adding that the double dip will likely not lead to contagion globally. Short recommends stocking up on German property investments above all else. France is also likely to offer strong property investments as, outside the Eurozone, Scandinavia looks to perform well. Considering the long-term scarcity predicted for senior housing and an expected student boom, investments in rental properties is considered a favorable asset class, as is self-storage properties, a relatively new concept in Europe, Short says. Write to Jacob Gaffney. Disclosure: the author holds no relevant investments.