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March | April | 2015 Commercial Investment Real Estate
Asia-Pacifi c's
Top Investment
Markets, 2015
1
Tokyo
2
Jakarta, Indonesia
3
Osaka, Japan
4
Sydney, Australia
5
Melbourne, Australia
Source: ULI/Emerging Trends in Real
Estate Asia Pacifi c 2015
1
INTERNATIO NAL
BE AT
Chinese insurers continue to invest in European commercial properties, par-
ticularly in London. Ping An Life Insurance, the second largest insurer in China,
recently purchased the 385,000-sf Tower Place of ce building from Deutsche
Asset & Wealth Management for $491 million. T e purchase marks Ping An's
second London acquisition in two years; it purchased the Lloyds of London
building for approximately $391 million in July 2013. High yields and long-term
tenants are attracting Chinese insurers to European of ce buildings according to
CBRE. Asian investment in European commercial properties reached $8.8 bil-
lion in 2014, according to DTZ Research, with no signs of stopping. "Outbound
real estate investment, now a f ourishing component of China's overseas invest-
ments, is becoming the 'new normal'" said Kitty Liu, CBRE's senior director of
global capital markets.
Big Deal
London's
Markets to
Watch
¬
A surge in corporate and leisure travel is stimulating Brazil's lodging market, despite bleak
economic conditions across the rest of Latin America. Of the 65,479 rooms under construction in
the region in 4Q14, 40,000 will be added in Brazil. Construction in the region is up from 49,054
rooms in 4Q13 according to EY.
¬
Retail construction in the Middle East is sky rocketing in 2015. Construction of the Mall of the World — the world's largest
mall — will add 8 msf of retail, entertainment, and lodging to Dubai's leasable space according to Cushman & Wakef eld. Other
notable projects in the pipeline include the 235,000-sm Yas Mall in Abu Dhabi, and the 163,500-sm Mall of Egypt in Cairo.
Global CRE Capital
Investor allocations for 2015
2014
Total Transaction
Volume
2014
$volume YOY
Market (in billions) change
Total $700 ↑ 18%
$267 ↑ 21%
$298 ↑ 24%
Asia Pacifi c $128 ↑ 3%
Source: JLL
Source: 2015 PREA Investment Intentions Survey
Source: 2015 PREA Investment Intentions Survey
45%
Europe
17%
Asia-Pacifi c
35%
U.S.
3% Other
2
3
4
5
Asia Pacifi c $ 128 ↑ 3%
Americas Americas $ 298 ↑ 24 %
Europe Europe $ 267 ↑ 21 %
Total $ 700 ↑ 1 8%