Tariffs have captured headlines since the end of last year prompting dealmakers to scratch around for opportunities in quirky corners of the market.

And the real estate investment trusts (REITS) sector is one area of idiosyncratic M&A activity which has developed over the past year or so – driven in part by rock-bottom valuations.

Listed European REITs are trading close to their lowest levels of the past decade.

Performance has also diverged significantly from the broader real assets category within infrastructure, where returns on listed assets have been much stronger.

Those factors are likely to have prompted some recent M&A interest in the sector, including from infrastructure funds themselves.

In the year through 28 May, there have been 14 deals worth a combined EUR 7.4bn involving European REITs, according to Mergermarket data.

There were 14 deals worth EUR 9.6bn in the same period during 2024.

Although down year-on-year in value terms, 2025 is still the third-highest year-to-date result since 2014.

Assura, a REIT that develops and manages healthcare buildings in the UK, is the biggest sector deal in the year so far.

Infrastructure investors KKR and Stonepeak agreed a cash takeover offer for the company in April while London-listed peer Primary Health Properties earlier this month tabled a rival offer worth GBP 2.7bn (EUR 3.4bn), including debt.

It’s part of a sector-specific trend in the UK where investors are attempting to position for increased health care property demand from the country’s National Health Service as part of the government’s 10 Year Health Plan, due to be unveiled later this year.

KKR’s Tara Davies and Stonepeak’s Nikolaus Woloszczuk, senior executives at the two asset managers, both emphasised they are taking a long-term perspective on Assura with plans to build best-in-class facilities.

Real assets

REITs, like Assura, are part a of broader real assets category which have typically been producing stronger investment returns.

“Our real assets and energy and infrastructure teams continue to be busy in areas where the focus is on longer-term returns,” according to Adrian Maguire, a corporate partner in Kirkland & Ellis’s London office.

Noteworthy deals in the space so far in 2025 include Eni’s exclusive deal with Ares Alternative Credit to sell a 20% stake in Plenitude (its renewable business) based on an EV of EUR 12bn and Ardian raising its stake in FGP Topco, the parent company of Heathrow Airport.

Mergermarket’s auctions-tracking tool lists three live auctions in the European real estate market.

These are Life Science REIT, which owns business parks for life sciences in the UK and is weighing a sale or wind-down; PRS REIT, which offers new-build family homes in the UK and is in talks with several bidders; and Midstar, which handles hotel properties in Scandinavia and is also up for sale.

While the uncertainties of a global trade war will continue to dominate headlines, REITs are providing a rich seam of activity for dealmakers year-to-date and may do for some time to come.

Top 10 European REIT M&A deals since 2020

Source: Mergermarket, data correct as at 25-May-25