Invesco Real Estate believes the time is right to target value-added opportunities in Europe, the company’s managing director for Europe Andy Rofe told PropertyEU at MIPIM in Cannes last week.

‘We’re looking at value-added opportunities with some letting risk and refurbishment requirements which can be turned into core product,' Rofe said. He added that Invesco had already concluded a number of such deal over the last 18 months. ‘The market is still incredibly tight for core product, there isn’t much of anything around at the moment and we therefore believe creating core from value-added assets will deliver over time.’

Rofe said the fund manager was currently sounding out US investors about the plans. The aim is to use leverage of 50%-60% and to start investing in 2012-2013 when stronger tenant demand is expected to filter through into the market. Returns of 12-15% are targeted.