Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Gulf SWFs to broaden range of target acquisition markets  Join our daily free Newsletter

MENAFN - Khaleej Times - 02/04/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - Khaleej Times) Global transaction volumes for commercial property to rise 15%

Sovereign wealth funds in the middle east mostly owned by the gcc countries are likely to broaden the range of target markets in 2014 after doubling their acquisitions to 18.8 billion in 2013 as the global commercial property transactions volumes are projected to jump knight frank’s said on monday.



A construction worker stands on scaffolding outside a commercial office block property in london. middle eastern investors have been targeting primarily the uk and the us. — bloomberg


The latest global capital markets report by the independent real estate consultancy said the global transaction volumes for commercial property (retail offices industrial and hotels) are set to see growth of at least 15 per cent in 2014 which will take the annual total to well in excess of 600 billion.


In 2013 global transaction volumes for commercial property amounted to 536.7 billion — a rise of 18 per cent on 2012 and the highest total since 2007 the report said.


The report argued that improving debt availability would boost interest in secondary markets and development opportunities providing a broadening range of target markets for sovereign wealth funds from the middle east as well as chinese investors.


The report observed that the amount of investment capital emanating from china and the middle east has increased sharply.


“real capital analytics data shows that in 2013 chinese investment in global markets tripled to at least 14.3 billion. over the same period middle eastern sovereign wealth funds doubled their acquisitions to 18.8 billion with the uk and us firm targets. this trend is expected to continue apace with the range of target markets likely to broaden” the report pointed out. with over 10 sovereign wealth funds and 1.7 trillion worth of assets under management the gcc has become as the world‘s largest net supplier of financial resources.


The total worth of all swfs in the world led by norway saudi arabia and the uae stands at around at 5.3 trillion in assets under management with gcc swfs accounting for approximately 30 per cent. swfs are fundamental to the gcc asset managent industry and account for 88 per cent of existing investable assets and 74 per cent of new assets.


For chinese investors the main target market has been the uk followed by the us and to a lesser extent australia. middle eastern investors meanwhile have been targeting primarily the uk and the us while us money has been 
flowing to a range of destinations including the uk france china germany australia and japan the report noted.


Joseph morris knight frank’s director of capital markets said property yields continued to offer a significant margin over government bonds in most markets. “while pricing at the prime end of the market will remain keen yield compression will slow as investor attention gradually shifts towards higher-yielding opportunities which offer good prospects for growth.”


Knight frank’s research manager for the middle east khawar khan said the weight of capital seeking exposure to real estate continues to increase with investors being drawn to the asset class by its income-producing qualities the improving availability of debt and a steady recovery in global occupier markets. “as a result global investment volumes should comfortably exceed the 600 billion mark in 2014. “ in the americas commercial transaction volumes amounted to 118 billion in 2013 an annual increase of 20 per cent. canada and mexico had a good year and the us market has rebounded very strongly in terms of pricing activity and the availability of debt. in europe 2013 volumes rose by over 20 per cent to reach 193 billion helped by a very strong final quarter.


“volumes for all commercial property sectors have risen sharply most notably for industrial and hotels. in europe the disposal of distressed assets accelerated in 2013 with loan sales playing a more important role” the report said.


While volumes in france and the nordics were down the uk had a very strong 2013. “there is increasing investor interest outside london and the south east which is leading to yield compression in the regional markets.”


According to knight frank in asia pacific total commercial volumes in 2013 were 118 billion up 11 per cent on 2012.


— issacjohn?khaleejtimes.com
MENAFN0204201400490000ID1093800889

 


Khaleej Times




  MENA News Headlines
 Jan 20 2017 - Saudi's Bahri records USD469mn net profitMENAFN
(MENAFN) National Shipping Co. of Saudi Arabia (Bahri), a pioneer in logistics and transportation has posted a net profit of USD469.3mn in 2016.Moreover, the firm recorded net revenue of USD1.8bn and ...

 Jan 20 2017 - UAE's real estate sector to increase this yearMENAFN
(MENAFN) The UAE real estate sector, spearheaded by its two main markets Dubai and Abu Dhabi, will make positive increase this year.Furthermore, the diversity of the UAE economy helped the country ...

 Jan 20 2017 - Mideast debt issuance reaches USD77bnMENAFN
(MENAFN) Middle Eastern debt issuance reached USD77.8bn in 2016, a 145 percent increase compared to the value raised amid 2015, the highest annual total in the region since 1980.Moreover, Mideast ...

 Jan 20 2017 - Qatar- Construction boom brings travel miseryGulf Times
(MENAFN - Gulf Times) The traffic along the road between Barwa Village signal and Mesaieed has become a nightmare for commuters owing to a huge increase in the movement of heavy vehicles, especially ...

 Jan 20 2017 - Qatar- Souq Waqif Spring Festival gets off to a colourful startGulf Times
(MENAFN - Gulf Times) An array of cultural performances and stage shows marked the opening of this year's Souq Waqif Spring Festival, which will run until February 2, from 3.30pm to 10.30pm daily. ...

 Jan 20 2017 - Qatar- Traders, customers lament absence of ATM at Ain Khalid SouqGulf Times
(MENAFN - Gulf Times) Shopkeepers as well customers at the Ain Khalid Souq have rued the absence of an ATM at the complex which houses dozens of commercial outlets, offices and restaurants. The ...

 Jan 20 2017 - Qatar- New deal extends helping hand to bereaved orphansGulf Times
(MENAFN - Gulf Times) Qatar Red Crescent Society (QRCS) has signed a memorandum of understanding (MoU) with Hamad Medical Corp (HMC) to provide aid for young orphans whose family breadwinner dies ...

 Jan 20 2017 - Mwani Qatar launches diabetes awareness driveGulf Times
(MENAFN - Gulf Times) Qatar Ports Management Company — Mwani Qatar, in association with the Qatar Diabetes Association (QDA), has launched a campaign to raise diabetes awareness among its ...

 Jan 20 2017 - QRCS' projects in S Sudan benefit thousandsGulf Times
(MENAFN - Gulf Times) The Qatar Red Crescent Society (QRCS) has completed a number of water, sanitation, and hygiene (WASH) projects in Central Equatoria and Northern Bahr El-Ghazal, in South Sudan ...

 Jan 20 2017 - Emirates Airline Literature Festival tickets go on saleGulf Times
(MENAFN - Gulf Times) Tickets are now on sale for the ninth Emirates Airline Festival of Literature, the organisers have announced. The annual literary extravaganza brings a host of top authors to ...

more...


 





Google

Easy Forex
 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help