German Real Estate - comment

BNP Paribas have published their half-year review of the German market and it’s very interesting. While large swathes of debt are trading in the 50s and equities are trading with discounts to NAV of 25% and more, yields on office buildings for instance (according to BNP) have widened by only 15bps to levels in Berlin (2,55 %), Düsseldorf (2,90 %), Frankfurt (2,80 %), Hamburg (2,70 %), Köln (2,75%) und Stuttgart (2,75 %). Meanwhile retail was said to have been stable so far: retail parks (3.50%), single specialist stores (4.40%), shopping centres (4.70%). Logistic centres are wider by 10bps at 3.10%. Unfortunately BNP did not provide resi stats.