Deals by Chinese investors dropped 66%

Singapore has overtaken China s the biggest Asian investor in US commercial property.

Bloomberg reports that Singapore is now Asia’s biggest Asian investor in US commercial property after deals by Chinese investors dropped 66%.

According to data from Real Capital Analytics and Cushman & Wakefield Inc, Chinese deals with the US went down $5.9 billion due to regulators cracking down on capital outflows.

 “We expect Singapore to continue to be the single largest source of Asian investments in the U.S. real estate markets,” said Priyaranjan Kumar, Cushman’s regional executive director of capital markets for Asia Pacific. He added that money may be invested in data centres, student accommodation and logistics.

Bloomberg also reported sovereign wealth fund GIC Pte accounted for almost three-quarters of the $9.5 billion of Singaporean purchases. Money went to property investment including the U.S. headquarters of Deutsche Bank AG and a portfolio of student accommodation.

Singapore’s investments in the U.S. last year included:

  • Buyer Deal Amount ($)
  • GIC Acquisition of Monogram Residential Trust, through its stake in a Greystar fund 4.4 billion
  • GIC 95% stake in 60 Wall Street (Deutsche Bank HQ) 988 million
  • GIC Acquisition of a portfolio of 24 student accommodation assets with CPPIB and The Scion Group 1.1 billion
  • Mapletree Investments/ Mapletree Industrial Trust Acquisition of a portfolio of student accommodation assets – 30% stake 750 million

CBRE Group Inc expects Singapore to follow similar trends in 2018. The city-state sits at No.3 in global rankings for US purchasing, just behind Canada and France.

 

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