Capitalising on the energy transition
Unquestionably, energy infrastructure is a sector to watch. As the ULI Emerging Trends in Real Estate Europe 2024 stated: “For the third year running, new energy infrastructure is identified as the sector offering the greatest overall prospects for investment, development and rents”. Surely 2025 will be no different?
In particular, development activity continues at pace in the the sub-sector of “EV” real estate. EGI news has just reported the latest acquisition by Infinium Logistics of its latest site for a proposed charging facility, part of which was originally an open storage investment asset. Plus developers are even transforming “unproductive” office stock into EV facilities. One thing is for sure – if essential transport and grid availability are in play, there is a new shopper for sites in the aisle. Plus, trade of these assets will no doubt increase (e.g. the sale of this Gridserve freehold ground lease – a purpose-built electric forecourt – by Pigeon Investment Management) – as investments with “ESG” credentials at the core.
As those in the EV sector will appreciate, planning frustration and limited grid infrastructure are key hurdles. Yet, with the latest government noise, optimism is in the air. Already, the political wind is behind onshore renewable infrastructure. Perhaps political weight can unlock even more opportunity in EV infrastructure too?
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