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Monthly Archives: October 2013

Distressed Assets Appeal to Chinese Investors

Chinese investors continue to be active in the US. This year alone, investments have exceeded $2 billion.

Four of the 15 largest Chinese property investments in the U.S in the past year have “resolved a troubled situation,” according to global commercial real estate data and information firm Real Capital said. These properties are often in default and suffering high vacancy rates or facing other turnaround challenges. Experts say these deals suggest the Chinese are both more willing to take risks than other real estate investors and patient enough to hold properties until values rebound.

Distressed Assets Appeal to Chinese Investors

Chinese investors continue to be active in the US. This year alone, investments have exceeded $2 billion.

Four of the 15 largest Chinese property investments in the U.S in the past year have “resolved a troubled situation,” according to global commercial real estate data and information firm Real Capital said. These properties are often in default and suffering high vacancy rates or facing other turnaround challenges. Experts say these deals suggest the Chinese are both more willing to take risks than other real estate investors and patient enough to hold properties until values rebound.

Cross-Border Transactions to Italy on the Rise

A sure sign that foreign investors are regaining confidence in the European commercial property market is seen through the growing interest in Italy, one of the weaker EMEA markets.

From January through early October ’13, the volume of Italian cross-border transactions totaled €2.75 billion ($3.71 billion), about 79% of all commercial real-estate transactions in Italy so far this year, according to Real Capital Analytics (RCA), a global research company exclusively focused on commercial real estate. “That is the largest amount of foreign investment in Italian commercial real estate since 2007, though it still is only half that year’s total,” says Joseph Kelly, EMEA Director of Market Analysis at RCA.

RCA data also shows that in Q2’13, yields in Europe’s harder-hit markets such as Italy, Spain, Portugal, Ireland and Greece were on average 7.3% for retail property and 8.4% for office property. Europe’s strongest markets, such as London, Paris, Germany and Sweden, are seeing initial yields as low as 5%. Many attribute this to the fact that these markets have largely returned to prerecession levels, causing them to become less appealing
To compare Italy with other markets in the EMEA or globally, try RCA’s TrendTrackerSM, where you can visualize and compare commercial real estate trends across countries, regions, markets, and submarkets using a single charting and data platform.

Buyers among the largest transactions in Italy in 2013 were largely those that either had never purchased property in Italy, or had not done so since the global financial crisis.
To see more details about crossborder transactions in Italy, try RCA’s Cross-Border Capital Tracker, an interactive map that allows subscribers to view capital flows around the world.

Cross-Border Transactions to Italy on the Rise

A sure sign that foreign investors are regaining confidence in the European commercial property market is seen through the growing interest in Italy, one of the weaker EMEA markets.

From January through early October ’13, the volume of Italian cross-border transactions totaled €2.75 billion ($3.71 billion), about 79% of all commercial real-estate transactions in Italy so far this year, according to Real Capital Analytics (RCA), a global research company exclusively focused on commercial real estate. “That is the largest amount of foreign investment in Italian commercial real estate since 2007, though it still is only half that year’s total,” says Joseph Kelly, EMEA Director of Market Analysis at RCA.

RCA data also shows that in Q2’13, yields in Europe’s harder-hit markets such as Italy, Spain, Portugal, Ireland and Greece were on average 7.3% for retail property and 8.4% for office property. Europe’s strongest markets, such as London, Paris, Germany and Sweden, are seeing initial yields as low as 5%. Many attribute this to the fact that these markets have largely returned to prerecession levels, causing them to become less appealing
To compare Italy with other markets in the EMEA or globally, try RCA’s TrendTrackerSM, where you can visualize and compare commercial real estate trends across countries, regions, markets, and submarkets using a single charting and data platform.

Buyers among the largest transactions in Italy in 2013 were largely those that either had never purchased property in Italy, or had not done so since the global financial crisis.
To see more details about crossborder transactions in Italy, try RCA’s Cross-Border Capital Tracker, an interactive map that allows subscribers to view capital flows around the world.

Chinese Investors Buy 15-Tower Apartment Project in Brooklyn

Greenland Holdings Group (China) is buying a majority stake in Atlantic Yards, a 15-tower apartment project in Brooklyn, NY. The development-site, which includes the Barclays Center arena, is worth nearly $4 billion, including debt. This will be the largest commercial real estate development in the US to be backed directly from a Chinese company.

According to the terms of the deal, Greenland will purchase a 70% stake from Forrest City Ratner Cos, who will continue to manage the development site. The purchase includes one office building and retail space in addition to the apartment towers.

With investments to U.S. real estate reaching $1.7 billion in 2013, transactions from China are up from $1.1 billion in all of 2011 and just $22 million in 2008, according to global commercial real estate research firm Real Capital Analytics (RCA).

“It basically came from zero five years ago,” said RCA Managing Director Dan Fasulo of the growing Chinese interest in U.S property.

Other transactions from Chinese investors in 2013 include billionaire Zhang Xin’s 40% stake in Manhattan’s General Motors building, which valued the property at $3.4 billion.

(A detailed report of Brooklyn’s apartment market, including recent transactions and historical performance analysis’s, can be downloaded through RCA’s Trend and Trades tool.)

Chinese Investors Buy 15-Tower Apartment Project in Brooklyn

Greenland Holdings Group (China) is buying a majority stake in Atlantic Yards, a 15-tower apartment project in Brooklyn, NY. The development-site, which includes the Barclays Center arena, is worth nearly $4 billion, including debt. This will be the largest commercial real estate development in the US to be backed directly from a Chinese company.

According to the terms of the deal, Greenland will purchase a 70% stake from Forrest City Ratner Cos, who will continue to manage the development site. The purchase includes one office building and retail space in addition to the apartment towers.

With investments to U.S. real estate reaching $1.7 billion in 2013, transactions from China are up from $1.1 billion in all of 2011 and just $22 million in 2008, according to global commercial real estate research firm Real Capital Analytics (RCA).

“It basically came from zero five years ago,” said RCA Managing Director Dan Fasulo of the growing Chinese interest in U.S property.

Other transactions from Chinese investors in 2013 include billionaire Zhang Xin’s 40% stake in Manhattan’s General Motors building, which valued the property at $3.4 billion.

(A detailed report of Brooklyn’s apartment market, including recent transactions and historical performance analysis’s, can be downloaded through RCA’s Trend and Trades tool.)

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