French election could impact real estate exit strategies
April 20, 2017

The majority (56 percent) of European real estate investors said they would review and most likely delay plans to sell property assets in light of a French presidential election victory for far Marine Le Pen's party, according to new research by Intertrust, a global provider of trust, fund and corporate services.

Almost half (48 percent) of real estate investors said they would be forced to rethink their disposal strategies depending on the outcome of the German Federal election on 24 September. Intertrust's research underlined the impact of political uncertainty on investor behaviour over the rest of 2017.

91 percent of investors said that the French presidential election will be a key driver in influencing their investment decisions over the rest of 2017, followed by the German election in September (73 percent), the impact of Donald Trump's US presidency (68 percent) and Brexit negotiations (58 percent).

The survey highlighted the extent to which potential terrorist attacks in mainland Europe and the UK could influence their decision to review or delay planned property sales with 42 percent citing this as a factor that would lead to a rethink.

Paul Lawrence, Global Head of Funds at Intertrust, commented: "The outcome of the French presidential elections will obviously have a significant impact on European real estate investments. However, despite this and the many political challenges across the European landscape, investor appetite in European real estate remains robust given its reputation as a low volatility asset class providing a strong yield and, in many cases, a refuge for capital preservation.

"That said, investors have a cautious eye on the elections and as such we expect to see a reluctance to venture further up the risk curve in search of stronger returns, with a preference for investment in lower-risk countries."





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The majority (56 percent) of European real estate investors said they would review and most likely delay plans to sell property assets in light of a French presidential election victory for far Marine Le Pen's party, according to new research by Intertrust, a global provider of trust, fund and corporate services.

Almost half (48 percent) of real estate investors said they would be forced to rethink their disposal strategies depending on the outcome of the German Federal election on 24 September. Intertrust's research underlined the impact of political uncertainty on investor behaviour over the rest of 2017.

91 percent of investors said that the French presidential election will be a key driver in influencing their investment decisions over the rest of 2017, followed by the German election in September (73 percent), the impact of Donald Trump's US presidency (68 percent) and Brexit negotiations (58 percent).

The survey highlighted the extent to which potential terrorist attacks in mainland Europe and the UK could influence their decision to review or delay planned property sales with 42 percent citing this as a factor that would lead to a rethink.

Paul Lawrence, Global Head of Funds at Intertrust, commented: "The outcome of the French presidential elections will obviously have a significant impact on European real estate investments. However, despite this and the many political challenges across the European landscape, investor appetite in European real estate remains robust given its reputation as a low volatility asset class providing a strong yield and, in many cases, a refuge for capital preservation.

"That said, investors have a cautious eye on the elections and as such we expect to see a reluctance to venture further up the risk curve in search of stronger returns, with a preference for investment in lower-risk countries."



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