Australia’s Big Deal
Australia continues to attract numerous cross-border
investors purchasing hospitality real estate. Sydney is the site of the
majority of transactions, according to JLL. The China-based Sunshine Insurance
Group recently paid a record $463 million for the Sheraton on the Park in
Sydney, breaking the previous record of $340 million for the Four Seasons, sold
in 2013, according to the Sydney Morning Herald. A building boom in office and
infrastructure development is projected to increase occupancy in five-star
hotels in Sydney and likewise increase investor interest in acquiring hotels.
Markets to Watch
Office leasing volumes were up 16 percent in 3Q14 in
Asia-Pacific markets and are forecast to rise 15 to 20 percent in 2014 and 10
to 15 percent in 2015, according to JLL. China in particular is seeing
increased leasing from domestic financial services and law firms on a hiring
binge. Beijing is forecast to remain a landlord’s market through 2016, as a
constricted market for high-quality space increases competition.
Central and Eastern Europe continue to lead Europe’s
retail development with Russia and Turkey accounting for 81 percent of 2014’s
shopping center development activity, according to Cushman & Wakefield. Top
countries in the 2015 retail development pipeline include Russia, Turkey,
Poland, Romania, and Croatia.