The gap between asking and clearing has closed
Through 2024 and 2025 European transaction volumes were suppressed less by a lack of capital than by a lack of agreement on price. That gap has now largely closed in the segments where lenders forced the issue. Where it has not closed, the constraint is refinancing timing, and those are precisely the situations where a prepared buyer with committed capital transacts at a level a competitive process would never produce.
Operating assets are the story; yield alone is not
Hotels, branded and serviced living, healthcare facilities and logistics all now trade on the quality of the operating platform. Capital is willing to accept operational exposure it avoided a decade ago — but it prices management, brand and staffing risk explicitly. OpCo/PropCo structures are back on the table in almost every mandate we run, and they are being negotiated as governance documents rather than tax structures.
Development finance is a structuring problem
Construction cost inflation has moderated but not reversed, and senior lenders remain conservative on speculative development. What is financeable is a forward structure with a credible end buyer or tenant, layered capital in which each tranche is priced to its actual risk, and a sponsor able to fund a real equity cheque. In Iberia in particular — one reason we opened in Málaga — international capital is actively looking for local partners with permitting capability.
Special situations reward preparation, not speed
Distressed, transitional and complex-title assets clear quickly when the diligence pack, title position and business plan exist before the counterparty is approached. Speed is a consequence of preparation, not an alternative to it.
This commentary reflects the views of Avertis Group at the date of publication and is provided for information only. It is not investment, legal or tax advice, nor an offer or solicitation in respect of any security. Forward-looking statements are estimates and may not materialise.