Australia's Big Deal
In what is being called the biggest direct real estate deal in Australia's history, China Investment Corp. purchased nine office towers in Melbourne, Sidney, and Brisbane, from Morgan Stanley for around $1.8 billion, making the sovereign wealth fund one of the largest office landlords in Australia. The deal closed at a 5 percent cap rate, with the properties bringing in an income close to $106 million annually. CIC beat out 50 competitors, all eager to buy into the booming office market Down Under. Underscoring the importance of CIC in the global investment market, this deal was its third big asset buy in 2015, having purchased 10 malls in France and Belgium for $1.4 billion and a Japanese commercial complex for $1.2 billion earlier in 2015.
global geography of real estate is changing, according to a new JLL report.
London, New York, Paris, and Toyko, the established meccas for real estate
investment, are giving way to medium-size global cities that exhibit strong
infrastructures and attract innovative capital, companies, and workforces. “New World Cities are proving to be particularly
attractive for real estate investors who are, either implicitly or explicitly,
taking into consideration issues of liveability, sustainability, and
technological prowess in their strategic decision-making,” reports Globalisation and Competition: The New
World of Cities.
Germany accounts for nearly a quarter of Europe’s logistics market, according to a recent
report from consulting company bulwiengesa. Since 2010, nearly 19 million sm of
logistics has been developed in Germany, representing a €7.7 bn investment.
International investors have increased their share of the market greatly, from
27 percent in 2010 to 68 percent in 2014.