Arrow Global leverages capital and expertise amidst market stress

Arrow Global is well-positioned for 2026, having raised significant institutional capital for its asset-backed strategies, enabling it to continue its focus on lending, credit, and special situations.

Stefano Giardina

Speaking to CRE Media Europe on the sidelines of MIPIM 2026, Stefano Giardina, managing director at Arrow Global, anticipated ongoing opportunities as the banking sector re-engages in lending, alongside a growing level of market stress driving special situations. As Arrow Global is active in living (residential), hospitality, and retail, he expects these three sectors to offer the most opportunities throughout 2026.

According to Giardina, Germany is showing significant stress, presenting clear openings. Southern Europe remains a key area for expanding its hospitality footprint, particularly in Portugal, Spain, and Italy. While he noted that CEE is “intellectually interesting,” it is not a current focus due to a lack of local platforms. Additionally, Arrow Global is exploring opportunities in Austria (as an extension of Germany) and the Benelux region (leveraging their Netherlands platform), though they remain highly selective and cautious when entering new markets.

Giardina believes there is still a significant gap between supply and demand, particularly regarding bank financing. While the market showed premature optimism in late 2025, reality is now setting in; there is an increased willingness to discuss distressed and special situations that were previously avoided.

A major supply-demand imbalance persists in the residential/living sector, especially in Tier-1 cities like Milan and Lisbon, which urgently require new stock. This remains a primary focus for Arrow Global, including within Germany. “Hospitality remains interesting, particularly when there is a credit situation that Arrow Global can address with its specialised expertise,” he added.

Giardina also anticipates potential inflationary pressures stemming from instability in the Middle East, which could lead to a slight increase in interest rates. He expressed particular concern regarding the impact on raw material costs due to logistics challenges (e.g., the Red Sea) and rising oil prices affecting European manufacturing. Consequently, Arrow Global is adopting a conservative and cautious approach to managing development sites and investments.

Thanks to its proprietary platforms and local teams in each jurisdiction, Arrow Global is equipped to not only originate and execute deals but also to implement complex business plans effectively, concluded Giardina.

Branislav Pekic