** Goldman Sachs calls the European real estate sector an "important source of diversification" for investors, citing real nature of the asset class, discounted valuations, sound fundamentals and security of the income in a volatile macro world

** For 2025 results, it expects a focus on leasing trends, with Data Centers a key focus at Merlin MRL.MC, asset rotation, and strategic actions like buybacks at firms such as Derwent DLN.L and Castellum CAST.ST

** It ups Swedish Castellum to "buy" from "neutral" on improving Swedish macro conditions and a corporate restructuring

** GS also raises its price target by 27% to 138 SEK, noting plans for disposals and buybacks

** The broker also upgrades Spanish Colonial COL.MC to "neutral" from "sell," citing the stock's 15% underperformance over last nine months and a valuation roll-forward now implying 3% upside

(Reporting by Marta Serafinko in Gdansk)

((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))