European real estate: GS searches for value, gauges risks
12/07/2022 07:58
** Goldman Sachs sees attractive opportunities in the
European real estate sector given stock-price dislocation, with
a 7% upside to the sector on average
** Real estate has been the worst-performing sector since
early Q2, GS says, as markets reflect concerns of diminished
rates tailwind for property and possible property value declines
** The broker believes banks are open to lend at the right
spread, stepping in to provide liquidity to replace bond
markets, which limits the need for significant disposals at
discounted prices
** It says real estate investment trusts in its coverage,
bar Nordics, enjoy good liquidity protection in the near term
and longer debt durations
** The broker upgrades France's Klepierre LOIM.PA to "buy"
from "neutral" expecting its cashflow to be more resilient than
some investors think
** It cuts Finland's Kojamo KOJAMO.HE to "sell" from
"neutral"
** London-focussed commercial property developer Great
Portland GPEG.L and German residential real estate firm Grand
City Properties GYC.DE are both downgraded to "neutral" from
"buy"
** GS reinstates Spain's Merlin Properties MRL.MC at
"neutral"
(Reporting by Elena Vardon)
((elena.vardon@tr.com))