Press
Limestone’s Otto Vaarmann presented at the “Vero2010” fair
23.03.2010
March 23, 2010
Limestone Investment Management presented on investment fair organized by Finnish Taxpayers Association in Helsinki on March 10th. Otto Vaarmann, portfolio manager of Limestone Eastern Europe Real Estate Equity Fund, spoke on the opportunities, which listed real estate companies in Eastern Europe present to investors at the moment. The presentation was held jointly with Confido Capital who is Limestone distribution partner in Finland.
Otto Vaarmann said: “Property sector in CEE is still valued at distressed levels by the markets despite more positive economic outlook for the region in coming years than for the EU-15 countries where the sentiment towards real estate sector has already notably shifted and valuations significantly rebounded in 2H2009. Looking at the relative valuation of CEE properties compared to their Western peers, local rental yields should be sufficiently above developed market levels – spread is even more attractive in higher-risk SEE/CIS markets – which leaves us with the conclusion that as there are signs emerging about decreasing yields in Western Europe, we should start to see some marks of positive convergence in CEE region anytime soon. All in all we are inclined towards the remarkable investment opportunity the CEE/CIS real estate sector provides at the moment and are looking for further decrease of inequalities in terms of stock market valuation between Western and Eastern European property companies that would lead us to significant outperformance of the region`s listed property sector compared to Developed Europe real estate equity asset class.
Limestone Eastern Europe Real Estate invests primarily in the listed stocks of real estate companies, but also in companies whose business success is directly related to real estate market, based or operating in CEE. The Fund was launched in June 2009 and is authorized to market in Finland.
More information on the Fund can be found on the web page of Confido Capital, who is the appointed distributor of Limestone Funds in Finland. For more information in Finnish see Confido Capitlal.
Otto Vaarmann said: “Property sector in CEE is still valued at distressed levels by the markets despite more positive economic outlook for the region in coming years than for the EU-15 countries where the sentiment towards real estate sector has already notably shifted and valuations significantly rebounded in 2H2009. Looking at the relative valuation of CEE properties compared to their Western peers, local rental yields should be sufficiently above developed market levels – spread is even more attractive in higher-risk SEE/CIS markets – which leaves us with the conclusion that as there are signs emerging about decreasing yields in Western Europe, we should start to see some marks of positive convergence in CEE region anytime soon. All in all we are inclined towards the remarkable investment opportunity the CEE/CIS real estate sector provides at the moment and are looking for further decrease of inequalities in terms of stock market valuation between Western and Eastern European property companies that would lead us to significant outperformance of the region`s listed property sector compared to Developed Europe real estate equity asset class.
Limestone Eastern Europe Real Estate invests primarily in the listed stocks of real estate companies, but also in companies whose business success is directly related to real estate market, based or operating in CEE. The Fund was launched in June 2009 and is authorized to market in Finland.
More information on the Fund can be found on the web page of Confido Capital, who is the appointed distributor of Limestone Funds in Finland. For more information in Finnish see Confido Capitlal.