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Cross-border commercial property investments by Asian firms reached US$8.6 billion (S$11.61 billion) in Q1 2015, the highest first quarter figure on record, according to CBRE’s latest report.
Marc Giuffrida, Executive Director of CBRE Global Capital Markets said: “Asian outbound investment enjoyed a strong start, as a number of key deals stretched into the quarter.”
The United States was the most popular investment destination as US$3.3 billion (S$4.46 billion) was pumped into the country by Asians. This was followed by Europe with an injection value of US$2.5 billion (S$3.38 billion).
“The US firmed as a favourite destination weighted with the closing of some key trophy deals, and we are also seeing strong demand from Chinese-based developers in the lower price brackets particularly along the West Coast,” noted Giuffrida.
According to CBRE, the growing Asian outbound investment is in line with its 2015 Investor Intentions Survey for Asia Pacific, results wherein 32 percent of the respondents expressed their intent to deploy capital outside of the region, while another 12 percent plan to spend more than they did in 2014.
The poll also predicted that the US and Europe would be the top two investment destinations where 43 percent of respondents said they want to invest in the United States this year due to its strong economic recovery and sustained low interest rate environment. The US was closely followed by Europe with 42 percent.
The biggest Asian outbound investments during the period include the sale of the Waldorf Astoria hotel in New York to Anbang Insurance Group for US$1.95 billion (S$2.63 billion), the sale of an office property at 1801 K St NW in Washington to Mirae Asset Global Investments for US$445 million (S$601 million) and the sale of Fulham Broadway Shopping Centre in the UK to Malaysia’s Employees Provident Fund for US$409 million (S$552.35 million).
Other major deal includes the disposal of Sydney’s Sheraton on the Park hotel to Sunshine Insurance Group Corp for US$354 million (S$478.08 million) and the sale of a 50 percent stake in the UK’s Bentall Centre to Gingko Tree Investment for US$287 million (S$387.6 million).
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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