Positive glow seen on horizon for European property - Europa Capital's Manns

The mood in European and US property markets is improving, with governments getting to grips with problems, more banks now lending money than at the start of the year, and the prospect of inflation underpinning medium-term pricing, says Noel Manns, principal of the London-based opportunity fund group Europa Capital. Europa last month made the first investment for its Europa Fund III, closed last year, acquiring a shopping centre in Berlin at a net initial yield of 8% from UK REIT Hammerson. Manns said the acquisition resulted from long and careful selection. "We had been looking to buy things for the last 12 months," Manns told PIE in an interview. "I think we took the right decision - that to rush in wouldn't have been correct... The deal with Hammerson was done at a price that suited both sides. And in this market that's what it's all about really: finding willing sellers... In most of continental Europe and still in large parts of the UK there is still a standoff where the sellers want one price and the sellers want a notably higher price."