ABSTRACT
Property activity stalled as imminent collapse of the entire European experiment – the European Union – added a new dimension of uncertainty right across the financial markets. With the investment banks' blow-up burnt into the collective memory of the industry, the size of Blackstone's funds and its ability to deploy that level of capital does attract criticism. As early as 2007, distressed debt funds started to raise capital, already sensing opportunity as record levels of debt spilled into ill-disciplined lending. The new challenge for European property is what will happen as the European Central Bank (ECB) weans the continent of this liquidity and interest rates rise, reducing property's appeal compared to other asset classes. Retail property's greatest defence has been the consolidation to create giants such as Unibail-Rodamco and Klepierre that can wield scale to build relationships with international retailers across their portfolios.
