INTERNATIONAL
BE AT
Ä
Finland's
Big Deal
Stockholm-based private equity frm NIAM is confdent about the future of Helsinki's
ofce market. Te frm purchased a portfolio comprised of 15 ofce and two retail
properties in the city totaling more than 100,000 sm at a 7.8 percent yield. "We are very
satisfed with the investment and its excellent locations, high-quality properties, and
steady existing income," says Johan Bergman, NIAM's chief executive ofcer. German
bank Helaba provided the fnancing.
"[European economic] growth will be led by a handful of emerging markets —
notably Russia and Turkey — but their expansion will be slower than it was previously.
Elsewhere, the Nordics will lead followed by Germany, Switzerland and the U.K., but
risk patterns may alter if financial markets start looking for other victims."
— David Hutchings, head of European research at Cushman & Wakefield, Economic Pulse: Forecast 2013
Global Office Stats, 3Q12
Average annual growth since trough
Global office rent: 3.4%
Global office capital: 7.5%
Source: CBRE
European Retail Investment, 2009–12
Intra-regional
25%
Domestic
47%
Inter-regional
28%
Source: Jones Lang LaSalle
Markets to ¬
Watch
Driven by government support for business investments, ofce space demand in India's top eight cities is
expected to reach 180 msf over the next fve years, according to Cushman & Wakefeld. Mumbai leads the charge
with 44 msf of estimated demand, followed by Bengaluru (31 msf) and the National Capital Region (27.8 msf).
However, ofce supply is forecast to outstrip demand in the top eight cities by approximately 40 msf, leading to rental correction in
select micro-markets.
Hotel inventory in Seoul, South Korea, could reach 40,000 rooms by 2016, according to Jones Lang LaSalle, an 86.3 percent
increase over 2011's supply. It's a welcome addition: Approximately 10 million international visitors stayed in Korea last year, and 1 million additional visitors are forecast for each year through 2014. Most of the new hotels will be locally managed limited-service properties.
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January | February | 2013
Commercial Investment Real Estate