A mixed blessing: What are Asia’s real estate investors bringing to the European party?
With prime yields in a number of Asia Pacific markets running at 10-year lows, together with relaxed regulation governing outward investment, Europe’s gateway cities are flavour of the month for Asian institutional investors, who are tipped to plough $150 billion (€108 billion) into global real estate over the next five years, according to CBRE.
The United Kingdom remains the dominant European draw for Asian investment, but broader investment strategies targeting Europe’s major cities are expected to be adopted this year, as Asian investors develop their European experience, real estate sophistication and investment appetite. In the immediate aftermath of the global financial crisis, Asian funds, particularly sovereign wealth, focused their investments primarily in London, and through fund management intermediaries and specialist brokers to source and facilitate deals.
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