RCA in the commercial property press:

'Quake May Reduce Japanese Cross-Border Activity

Bloomberg reports: A recent article on Bloomberg proposed that, once Japan has realized the extent of the damage done by the strongest earthquake on record, the country’s cross-border commercial real estate investors may choose – or be forced to – reduce their international holdings to focus on plans to rebuild domestically.

This will be particularly problematic for the UK market, where Japan-based investors have purchased nearly $1.0 billion in property since 2000 according to data aggregated by Real Capital Analytics (RCA) and quoted by Bloomberg. At that level of volume, Japan ranked as the 19th-largest direct foreign investor in the UK over the past decade. Japanese investors also have significant equity and debt holdings in the UK’s two largest REITs, Land Securities Group Plc and British Land Co, as well as insurance firms based both in the UK and Japan that lend to UK players.

Japanese investors have made direct property acquisitions outside their country totaling $11.8 billion since 2007, according to RCA data. Since that year, the UK has ranked as the fourth-most popular national destination for Japanese capital. Spain was the fifth-most targeted, capturing $5.0 billion in Japanese cross-border capital.

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Posted by: Nina Turner

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