The requested news item does not exist. Please return to News
Global, US and Singaporean investors emerge as the most active cross-border sources of capital
De Haast added: “Risk aversion has risen over the past few months, meaning large deals are taking longer to close. While we’re seeing more transaction flow, in the second quarter there was a notable absence of big ticket, single asset transactions. There were fewer than ten $500 million-plus single asset sales this quarter which is roughly the same number as the second quarter of 2010. There were over 20 big deals in the first quarter and while a significant number of large transactions are in the pipeline for H2, the volatility of markets could cause further delay.”
Sources of Capital Capital around the globe is targeting both domestic and foreign investments. This quarter, the United States was once again the greatest source of capital purchasing $27.1 billion in direct commercial real estate, up $7 billion from first quarter, but the increased volume was mainly spent domestically. The United States was also the third most active cross-border purchaser at $2.6 billion. The booming U.S. investment activity is largely home-grown with more than 110 US cities appearing in the firm’s database in the second quarter versus less than 90 in first quarter and just 60 in the second quarter of 2010.
TOP 10 US CITIES in Q2 2011 (excluding portfolio transactions) – new entrants compared to Q1 2011 highlighted in bold
In addition to surging U.S. capital, the second quarter saw a doubling of acquisitions by the global funds to $20.6 billion and significant jumps in British, Canadian and German-sourced capital. Interestingly in these three countries most of the new capital was also spent domestically.In the second quarter there was a total of $38 billion in cross-border purchases, up from $22.9 billion in the first quarter representing a 66 percent increase. This was driven by a doubling of foreign-bound Singaporean capital, led by several major acquisitions in China, and by a huge surge by the global funds. Purchase levels by the other top cross-border investors (the US, Germany, Canada and the UK) were broadly unchanged.
Preferred SectorsThe office sector was dominant in the second quarter, accounting for just over 40 percent of total volumes, down from 45 percent in the first quarter 2011. Retail’s share rose to 33 percent from 28.5 percent. The upsurge in hotels volumes (including casinos) led that sector to overtake industrial as the third most liquid sector globally with a share of eleven percent. Industrial meanwhile accounted for ten percent.
+65 6494 3641