Foreigners snap up 17.6% of Q2 property investment deals
Foreigners accounted for 17.6 % of all property investment deals in Q2 2011, up from 10.5 % in the first quarter of the year, according to a new report from DTZ Research.
Overall, about $8.3 billion of investment sales were transacted in Q2 – a tad higher than the $8 billion worth of deals recorded in Q1 2011.
Foreign investment in Q2 was largely driven by foreign capital from Asian economies. Of these, investors from China and Hong Kong were the most active, as they bought three collective sale sites and two government land sites for a total of $746.4 million.
Malaysian investors were also involved in two entity-level transactions. GuocoLand sold 20 % of its stake in a development at Tanjong Pagar to Malaysia's Employees Provident Fund, while IOI Corporation bought over US-based Elad Group's share in the South Beach development.
Purchases of GLS sites make up the bulk of investments in Q2 2011, totalling $4.6 billion, which is about 55 % of total investment activity. A total of 16 sites were awarded from the GLS programme in Q2 2011, which is twice the number of sites awarded in Q1.
The average deal size in Q2 2011 was also 17.9 % higher than the average deal size in Q1 2011.
Source : The Business Times, 8 Jul 2011
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