CANNES-Are European REITs stuck at the starting gate? The suggestion was made by some at MIPIM here that REIT growth has been “disappointing.” And what will come of the expectation that rather than creation going forward on a country-by-country basis, that a unified, over-arching European REIT structure will emerge?

REIT growth is “progressing slowly,” according to Cofinimmo CEO Jean Carbonelle. “But we have proposed an option for a REIT regime in all European countries.” He is hopeful that it will take effect in “three or four years.”

In the long term, listed entities are “well-positioned,” he says, due to their relatively strong capital raising capability and strong management structures. But he cited such hurdles as low demographic growth and a limited supply of assets, in addition to the volatile market conditions, that restrain REITs from achieving their full potential.

But slow to grow as they may be, where REITs exist, they dominate, leading the European market, as they do in the US, in capital raising. A strong statement to make in such a severely constrained market. “Capital raising is down 75%,” according to Olivier Elamine, CEO of Alstria Office REIT. But within that environment, REITs and life companies have “been the dominant players in the market.”

In terms of which model—listed or unlisted—is better, that all depends on what the investor is seeking. “That's like comparing a Mercedes to a BMW,” says Mathias Thomas, CEO of Inrev. “It all depends on what your investment criteria are and what you are looking to achieve.”

For their part, investors are looking for something new, says Aberdeen Asset Management global property head Andrew Smith. These new structures include separate accounts and club deals. “In a tough capital raising environment,” he says, “investors won't make long-term decisions.”