China investment grows in European RE

Greater China investment into European commercial real estate (CRE) reached €8.5 billion ($9.3 billion) in 2015, a 22 percent increase on 2014. The trend will continue to be upwards, according to the latest research by Cushman & Wakefield.

Greater China investment into European commercial real estate (CRE) reached €8.5 billion ($9.3 billion) in 2015, a 22 percent increase on 2014. The trend will continue to be upwards, according to the latest research by Cushman & Wakefield.

The report indicates that Chinese investors have taken a broader approach and, as a result, have been active in a wider range of property types and geographies.

“We see a continued shift away from offices with investment in retail growing and a focus too towards industrial and logistics assets,” said Ted Li, head of the EMEA China desk at Cushman & Wakefield.

“Whilst some institutional money will continue to seek long income assets, those with an existing footprint will consider value-added opportunities as they seek to enhance returns,” he explained. There was an increase of investment in retail assets from 6 percent in 2014 to 17 percent in 2015.  Other sectors, predominantly hospitality, represented a third of investment.

“Whilst London dominated, marginally more capital flowed to the regions.The biggest swing has been investment moving increasingly towards the continent, representing 44 percent of investment compared to 20 percent in 2014,” said Nigel Almond, head of capital markets research at Cushman & Wakefield.

France accounted for 27 percent of investment and there is an increase in money flowing into Germany, Southern Europe and Benelux markets as well.

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