European real restate: 'Stock-picking trumps sub-sectors and styles', GS says

Mercialys SA

13/12/2021 07:34

** Goldman Sachs expects European real estate as an asset
class to remain attractive to long-term institutions, supported
by fair yields to alternatives and inflation protection
    ** "We believe sub-sector and style allocation are likely to
matter to a lesser extent in 2022 versus 2021, ultimately
increasing the importance of stock-picking," the broker says
    ** It adds the Omicron variant is a limited overall risk at
this stage, but cites provisions for hotel-exposed landlords and
higher cost of capital inputs for retail properties
    ** The brokerage upgrades France's Mercialys  MERY.PA  to
"buy" from "neutral" while it cuts Kojamo  KOJAMO.HE  and
Supermarket Income REIT  SUPR.L  to "neutral" from "buy"

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))