By Jim Costello on May 29th, 2019
Cross-border investors reined in their spending in the U.S. in the first quarter of 2019, the latest edition of the US Cross-Border Investment Compendium shows. Direct acquisitions by cross-border investors dropped by about half compared with a year ago as significant portfolio and entity-level deals, which had characterized much of the cross-border activity during 2018, were largely absent.
Deal activity by Canadian investors dropped by 53% year-over-year in the first quarter. A year ago Brookfield had bought a hotel portfolio and the CPP Investment Board was involved in the purchase of a large apartment portfolio. Activity from Asian investors posted the largest drop; a year prior the buyout of GLP by a consortium of Chinese investors had closed.
On a positive note, deal activity from the Middle East swung higher. There was $1.8 billion in direct acquisitions from these investors in the first quarter of 2019, compared with less than $1 billion a year ago.
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