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Australia’s real estate investment sector posted a strong performance during the third quarter of 2017, with investment in commercial real estate and retail assets at AU$8.8 billion and AU$2.4 billion, respectively.
“Activity was divided between large format retail and neighbourhood centres. However, the standout transaction was GPT’s 25 percent acquisition of Highpoint Shopping Centre for AU$680m at 4.2 percent,” revealed Cushman & Wakefield.
The office sector provided much of the liquidity as it accounted for almost 56 percent or AU$5 billion of the total investment.
However, the research found a drop in foreign investment at AU$2.5 billion or 29 percent of total investment, compared to the first quarter’s 48 percent, reported The Urban Developer.
“Singaporean-based investors committed AU$1.2 billion over the quarter, led by Suntec REIT’s acquisition of the Olderfleet Building in Melbourne CBD for AU$414 million,” said Cushman & Wakefield.
“Ascendas, Mapletree and GIC also made significant purchases. International investors (those with a global platform) remained largely on the sidelines at AU$245 million, just one-third of their longer-term average.”
The research noted that while the figures look promising, around AU$2 billion worth of investment is still needed over the next quarter to match the result in 2016.
More popular investment opportunities were expected to be in retail assets due to their strong relative value proposition.
This article was edited by Keshia Faculin.
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