The UK government’s proposed ban on upward-only rent reviews misunderstands today’s leasing landscape. Lease lengths have already shortened, flexibility is embedded, and market practices have evolved far beyond rigid clauses. Rather than legislating away a declining mechanism, policymakers should focus on the real issues facing the High Street—business rates, planning inertia, and economic revitalisation. Reform should follow evidence, not sentiment.

The London and Dublin stock exchanges are at a critical juncture. Once vibrant hubs of capital formation and economic dynamism, both are now facing a stark decline in primary market activity, such as IPOs.

Risk remains in the sector, but retail assets are certainly rebounding, with a number of large deals recently bolstering confidence.

The real estate fund sector in the UK and Ireland continues to face mounting challenges, closing 2024 with full-year net outflows of £1.155 billion, according to the latest data from Calastone, the largest global funds network. This marks the seventh consecutive year of capital flight from the sector.

The UK and Irish real estate markets underwent a transformative year in 2024, characterised by contraction, mergers, and cautious optimism. After years of declining capital values, signs of recovery began to emerge, buoyed by stabilising inflation and the initial stages of base rate cuts.

The recent Dublin City Taskforce report, published at the end of October, recommended how multiple state and semi-state agencies can collaborate to effect a strategic overhaul of Dublin’s city centre. The role of private developers, investment funds, and institutions is equally important, and perhaps even more so, but for these to be enabled, state actors must evolve and facilitate quicker decision-making.

The ‘build it and they will come’ mantra should be ringing in the ears of property funds given global trends

UK real estate will need to adapt to wetter, hotter and colder environments ESG regulations, government policy and occupiers will demand real estate fit for purpose in extreme weather Green buildings are being demanded by policy, consumers and investors.

Those with shorter debt maturities face significant refinancing risks, while those with longer profiles are better positioned to ride out the storm. European real estate investment markets have experienced significant shifts in the underlying drivers in recent years. Mostly this has been driven by macroeconomic conditions, including rising interest rates as a response to spiking inflation, and a general economic malaise that has permeated most markets, though less so Ireland. This has dented confidence to levels not seen since 2011 or 2012, with the lack of available financing, at sensible pricing levels, one of the primary issues. An oddity that has emerged in this cycle is that market rents have continued to climb, even for offices, while investor confidence remains on the floor. The turnaround, which is edging closer and closer, will be driven by debt, not by occupier demand. As central banks tightened monetary policy to combat inflation, listed property companies (mostly REITs) and other property funds faced growing questions related to their indebtedness. Much of this was debated around Boardroom tables, with many conversations drifting to AGMs as investors began to air frustrations. Key concerns included soaring loan-to-value (LTV) ratios as property values fell, a situation outside the control of management, but it was how executives reacted to rising debt costs which became the key battleground. As debt began to edge towards maturity, the rising cost of refinancing became an issue that could push management teams to make hasty, and even rash decisions on what to do with...

A number of government policy moves, regardless of how well-intentioned, have created further problems that could hamper accommodation supply.

The final quarter of 2024 could be an opportune time for investors, but they should still exercise caution I spent ‘back to school’ week meeting with leading institutional investors, family offices and private equity houses across Europe’s financial hubs, looking to gauge appetites for the final quarter of 2024 and into 2025. Almost all have been cautiously optimistic for the months ahead, while stressing they are still “not quite ready”. This is not universal by sector or investor type, and has very much depended on the route to market which they intend to take. Real estate markets, both public and private, and in both the United States and Europe, are exhibiting signs of stabilisation after a turbulent reset. Data from the US analytics house Green Street, as well as the London-based MSCI, shows that both regions are showing upward momentum on a year-to-date (YTD) basis, suggesting that the markets may be finding their footing. What is interesting is that this nascent recovery is being underpinned by improving discounted cash flow (DCF) values and not so much – at least yet – RedBook valuations. This is very much down to the type of investor exploring market opportunities, and the belief that certain markets are still overvalued due to a general dearth of distressed sellers. We are seeing a renewed investor interest in the long-term income-generating potential of real estate, especially where that income is derived from quality tenants with positive prospects. This is being played out in aggressive M&A activity in...

Hammerson, the London-listed retail property company and owner of Dundrum Town Centre, has had a very good week. To put this in context, good news and retail property are not words that have gone together often over the last 15 years, but the dramatic turnaround of Hammerson under its chief executive Rita-Rose Gagné has earned it deserved plaudits. Now it can get back into growth trajectory, and Ireland is likely to play a big role in delivering this growth. The first bit of good news, announced before markets opened on Wednesday, saw the completion of Hammerson’s disposal of its stake in Value Retail, the fashion outlets group that includes Kildare Village. This sale, generating proceeds of around £600 million has brought financial stability after eight difficult years, and the capacity to fund its refreshed destination strategy. This landmark sale, one of the largest retail property transactions in years, has helped reduce net debt significantly, improving its financial metrics, including a lower loan-to-value ratio (25 per cent) and reduced leverage. With the Dundrum refinancing complete, Hammerson has no major refinancing needs until 2027, enhancing its ability to raise new capital on favourable terms as rates come down. This strengthened Hammerson’s balance sheet, and has enhanced liquidity and flexibility for future investments. Timing of this cash injection couldn’t be better, with prime retail and the wider commercial property market on an upward curve. The exit from Value Retail allows Hammerson to focus on its now core strategy of transforming its retail destinations...