The third quarter of 2018 was the second strongest on record for European investment volumes. A total of €69bn was traded, bringing the total for Q1-3 2018 to €216bn. On a rolling 12 month basis investment volumes are in line with the same period in the previous year, meaning that the market continues to transact at near-record levels. We see no reason for momentum to weaken in the fourth quarter.

Markets continue to polarise between retail on the one hand and logistics and alternatives on the other; in the public equity space discounts to NAV of greater than 30-40% are now common for retail companies. Though the catalyst for a reversal in this trade is hard to predict, many investors are openly talking about searching for value in such discounts.