Bustling Net Lease Real Estate Market Spreads Reach to Europe

By Tom Stabile and Edward LaPuma

View the article from March 23, 2022, at Fundfire

  • LCN Capital Partners’ co-founder, Ed LaPuma, share insights about sale-leaseback transactions becoming more prevalent in Europe.

  • LaPuma commented that “the early days of the European net lease market two decades ago featured many obstacles, including cultural barriers,” and “that slowly began to change in the late 1990s and early 2000s, but has yet to go mainstream – leaving a vast potential market for sale-leaseback managers to ply.” Nevertheless, he added, “Europe still has a lot of deals that could be made.”

  • “The European net lease market also is an increasingly popular target for U.S. investors, who view it as a way to diversify their portfolios, said LaPuma, whose firm has raised parallel sets of net lease funds – three focused on the U.S. and three on Europe – over the past decade. European investors contributed significant capital for the first time to LCN Capital’s most recent Europe-focused, euro-denominated fund, which closed at $715 million last year, he added.”

  • LaPuma concluded that given the uncertainty in the broader economy, “net lease strategies may fare better than other real estate segments in times of economic uncertainty because their assets deliver regular lease income and a degree of inflation protection from contracted cash flows.”

About LCN Capital Partners

Founded in 2011 by Edward V. LaPuma and Bryan York Colwell, LCN has assets under management in excess of $6.0 billion across its seven funds. Headquartered in New York City, LCN also has offices in London, Amsterdam, Cologne, and Luxembourg.

LCN Capital Partners is a recognized leader in the primary sale-leaseback and build-to-suit markets, where investments and leases are directly originated with corporate users of mission-critical real estate. LCN delivers a long-term solution for its tenant-clients by providing a non-bank capital resource, efficient monetization of on-balance sheet real estate, continued operational control of key assets, enhanced financial metrics, and potential tax benefits. In addition, LCN’s investing partners benefit from the long-term and inflation-protected distributions that it supplies. For more information, please visit: https://www.lcnpartners.com/.

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