logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Singapore
  • Global
  • United States
  • Angola
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Saudi Arabia
  • Singapore
  • Slovakia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
+65 6224 8181
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Global Investors)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Office
      • Retail
      • Industrial & Logistics
      • Data Centres
      • Hotels
      • Japan Desk
      • Residential
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Capital Advisors
      • Consulting
      • Host
      • Investment Accounting & Reporting Solutions
      • Leasing & Advisory
      • Project Finance
      • Property Management
    • Services for Occupiers
      • Enterprise Facilities Management
      • Host
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Project Finance
      • Transaction Management
      • Workplace
  • Properties
    • Office
      Retail
      Industrial
      Flexible Office
      Residential
      Shophouse
      Hospitality
  • Research & Reports
    • About Research
      Singapore Research Archives
      South East Asia Research
      Asia Pacific Research
      Global Research Gateway
      Global Research Gateway Support
  • People & Offices
  • About CBRE
    • Careers
      Client Tools
      Corporate Information
      Corporate Responsibility
      Case Studies
      Investor Relations
      Media Centre
      Asia Media Centre
      Expert Opinions
      CBRE 60 Anniversary

Previous

Press Release
4 & 6 Lorong 24 Geylang

Next

Press Release
Leasing Market Showed Resilience in Q1 2015
  • Asian Q1 Outbound CRE Investment Strongest on Record

Asian Q1 Outbound CRE Investment Strongest on Record

May 27, 2015
  • Email
  • Share
  • Tweet
  • Share

US - Top Destination for Asian Capital; Investment in Hotel and Alternative Asset Classes to Surge

Asian cross-border commercial real estate (CRE) investment in Q1 2015, at US$8.6 billion, constituted the strongest recorded Q1 outbound performance since major Asian outflows began. The first quarter of 2015 saw a departure from the historic trend, with CBRE Research reporting the US as the top destination for Asian outbound investment, with US$3.3 billion. Europe featured in second place, with US$2.5 billion. These include investment in standing assets only, while, beyond that, Asian investors are very actively perusing development opportunities – with at least $600 million known to have been invested in development in the Americas region in Q1 2015. 

Marc Giuffrida, Executive Director, CBRE Global Capital Markets, said, ”Asian outbound investment enjoyed a strong start, as a number of key deals stretched into the quarter, but we also saw under bidders moving on to alternative deals which kept the numbers buoyant. The US firmed as a favorite 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.” 

The increasing activity in total Asian outbound investment and US real estate is in line with CBRE’s 2015 APAC Investor Intentions Survey, wherein 32% of respondents expressed the intent to deploy capital outside of APAC, with a further 12% expected to spend more than in 2014. The strong economic recovery and sustained low interest rate environment in the US have prompted some investors to shift their focus from Western Europe to North America, with 43% preferring North America, closely followed by Europe with 42%, opposed to a respective 20% and 23% split reported back in the 2014 APAC Investor Intentions Survey. Overall, investor interest towards Europe and the Americas is more or less on a par, oppose to Europe being clearly in the lead throughout the 2007-2012 period.​

Asia – Second Largest Source of Cross-Regional Capital in Global Commercial Real Estate


Source: CBRE Research, May 2015

Note: Standing Investment only; development sites are excluded.

Nevertheless, EMEA still continues to attract a high volume of Asian capital, particularly from Taiwanese and Chinese insurers who have strong appetites for prime core assets in gateway cities. Taiwanese players have been actively acquiring quality stock in London—currently the world’s top investment destination—whereas Chinese insurers have increasingly diversified into continental Europe.

Global Selection of Some of the Largest Asian Outbound Transactions in Q1 2015


Source: CBRE Research, May 2015

Mr Giuffrida added, “based on our work levels, we expect to see growing interest in opportunities within Germany, while in UK regional areas this could be in office, retail and logistics. They are being drawn by the higher real-time yields, and we are now seeing rental growth. Development sites will continue to be popular amongst developers but as growth is coming back to Europe, we foresee opportunities in commercial development as an alternative to buying core office buildings. Perhaps the most interesting area for growth is underway in the alternative space such as student accommodation, as well as health and aged care. The latter are two strategic areas where given the rapid shift in elderly demographics in Asia and around the world, we can expect the acceleration of patient capital providers from insurance groups and conglomerates.”

​-END-​

​​​​​​​​​​

​​

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Media Contacts

liching
Li Ching Seah
Associate Director
Singapore
Marketing & Communications
+65 6326 1209
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • People & Offices
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Policy
  • Singapore Privacy Policy
  • Sitemap
  • Disclaimer
  • Terms of Use
  • LinkedIn
  • Twitter
  • Youtube
  • Facebook
  • Instagram