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 management 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

 


Khaleej Times




  MENA News Headlines
 Mar 1 2015 - Oil derivatives to go up about 12% starting SundayJordan News Agency
(MENAFN - Jordan News Agency) Fuel prices will rise by about 12 per cent with effect from Sunday due to soaring global oil prices, but the price of cooking gas cylinders will remain unchanged, ...

 Mar 1 2015 - Labour ministry to step up crackdown on child labour, MinisterJordan News Agency
(MENAFN - Jordan News Agency) The Ministry of Labour on Tuesday announced it will take stricter measures to curb child labour, and minister Nidal Qatamin said firms or installations proven to have ...

 Mar 1 2015 - King, Putin discuss ties, regional developmentsJordan News Agency
(MENAFN - Jordan News Agency) His Majesty King Abdullah II on Saturday discussed with Russian President, Vladimir Putin, the latest developments in the Middle East and ways to address them to enhance ...

 Mar 1 2015 - King receives congratulatory cables on 59th anniversary of army ArabisationJordan News Agency
(MENAFN - Jordan News Agency) His Majesty King Abdullah II received cables of congratulations on the occasion of the 59th anniversary of the Arabisation of the Jordan Armed Forces (JAF) which falls ...

 Mar 1 2015 - Jordan's agricultural exports rise by 15 percent in 2014Jordan News Agency
(MENAFN - Jordan News Agency) Jordanian food and agricultural exports rose by 15 percent in 2014 to JD1.1 billion, compared to JD981 million in 2013.Further, Agriculture Minister Akef Al Zu'b said in ...

 Mar 1 2015 - Helicopter that Carried Sudan's Vice President Catches FireSaudi Press Agency
(MENAFN - Saudi Press Agency) An airport official says a helicopter that had carried Sudan's Vice President caught fire after landing hard following a strong crosswind.Salah Salam, the director of ...

 Mar 1 2015 - Medical Team Announces Successful Separation of Yemeni Conjoined Siamese TwinSaudi Press Agency
(MENAFN - Saudi Press Agency) The medical and surgical team specialized in Siamese twins' separation announced today a success of separating Yemeni conjoined Siamese twin at King Abdulaziz Medical ...

 Mar 1 2015 - Kingdom of Saudi Arabia Donates $ 1 Million for Islamic Museum in AustraliaSaudi Press Agency
(MENAFN - Saudi Press Agency) Saudi Ambassador to Australia and New Zealand Nabil bin Mohammed Al Saleh has announced that the Kingdom of Saudi Arabia donated $ 1 million in financial support to the ...

 Mar 1 2015 - Custodian of the Two Holy Mosques to Sponsor the Second International Conference on King Abdulaziz HistorySaudi Press Agency
(MENAFN - Saudi Press Agency) Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud will sponsor the 2nd International Conference on the history of King Abdulaziz bin Abdulrahman Al ...

 Mar 1 2015 - Russia, UAE Hold TalksSaudi Press Agency
(MENAFN - Saudi Press Agency) Russian President Vladimir Putin and Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces of United Arab ...

more...


 






Google

Click to Apply

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

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