Investment bank Morgan Stanley expects European property stocks will see discounts to net asset value (NAV) widen due to concerns over medium-term growth and the risk of a fresh liquidity squeeze.
The bank expects UK stocks to be hit particularly hard and is lowering its NAV forecasts for 2012 by 13%. For mainland Europe it is betting on a more moderate decline of 2%.
On the Continent, the ugly duckling of the market in September was Central and Eastern European developer Globe Trade Centre, which saw its share price shed 17.36% in the first three weeks of September.
Shares in Foncière des Régions also took a severe hit in September on the back of a failed takeover of its smaller peer Foncière Paris France. The French office real estate investment trust shed 16.32% of its share price in the weeks following the announcement.
The full article appears in the October edition of PropertyEU Magazine. Click on the link below to subscribe. | 
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