Land Securities’ outsourcing business Trillium is investigating a push into Europe to capitalise on billions of pounds’ worth of owner-occupied property.
Having established itself as the market leader for property outsourcing in the UK, LandSec Trillium is looking into the potential for exporting its expertise and capital to continental Europe.
Governments embarking on PFI and PPP-style deals and asset-rich companies in France, Germany and Italy could open up new markets.
A decision to target such deals would break with LandSec’s decision to stick to the home market it knows best.
But DTZ research – of which LandSec Trillium was a co-sponsor – suggests there is £40.7bn-worth of potential business in the next four years, which has prompted the company to seriously consider such a move.
DTZ found that the average level of owner-occupation across Europe is still around 50%, compared with 30% in the US.
Between them, France, Germany and Italy account for more than 50% of the £23.7bn worth of European outsourcing potential identified by DTZ.
John Knowles, DTZ investment director, said: “Investors are still seeking to invest unprecedented levels of equity and debt in real estate, and outsourcing will provide one of the main future areas of opportunity.”
References: EGi News 10/05/04
