RCA in the commercial property press:

Asia scours world capitals for choice property

Reuters reports: Asian property investors, including sovereign wealth funds with large war chests, are on a shopping spree for choice office buildings in global capitals, striking while there are bargains to be had.

They have set their sights on property in central business districts or the prime retail streets in London, New York and Sydney, as property prices in parts of Asia, including China and Singapore, rebound to close to pre-crisis levels.

"With property yields in places like Hong Kong and Singapore relatively low, investors have spotted a chance to make double-digit returns and harness good capital growth from UK real estate over the next two years or so," said Shaun Gorvin, an investment director at BNP Paribas Real Estate in London.

Britain attracted $13.7 billion in commercial property investment in January-June, while the United States drew $16.2 billion, said New York-based real estate market research firm Real Capital Analytics.

The UK and U.S. alone accounted for around a quarter of the $116 billion invested in global real estate in the first half.

Banks are also slowly resuming lending to property buyers, albeit at lower loan-to-value levels than about two years ago.

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Posted by: Matthew Stone

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