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Market Timing Academy Who is Investing in U.S. Real Estate from Overseas?

The North American real estate market continues to present overseas investors the most attractive real estate investment market in the world, but with the global recession in place, the arena of international investors has been changing. The question we get most often from our Investment Banking clients is who exactly is investing in U.S. real estate from overseas? We ran across an interesting article from the Research Whitepaper that I thought you would find interesting. The following are what recent reports and surveys have found: Canadian
institutions
are
snapping
up
 properties
across
East
Coast
very
fast
–
 so
far,
there
has
been
steady
acquisitions
 from
Canadian
banks,
Canadian
funds,
 Canadian
real
estate
companies.
The
 institutions
so
far
have
been
more


focused
in
the
east
coast
cities,
mainly
 New
York
City,
Boston,
Chicago,
but
also
 in
Florida
as
well.
Canadian
investors
 have
acquired
commercial,
industrial,
 shopping
centers
and
also
some
hotel
 developments
–
as
CAD
continues
to
 climb
against
USD,
which
may
reach
 parity
very
soon,
this
trend
should
not
 stop
in
the
short
term.
 Germans
continue
to
show
strong
 support
in
US
properties,
German
 investors
are
always
long‐term
property
 investors;
and
they
are
one
of
the
major
 property
owners
around
the
world.
 German
institutions
are
mainly
 interested
in
office
&
other
commercial
 assets,
they
are
often
looking
for
A
Grade
 or
Premium
Grade
facilities,
some
are
 often
leased
back
to
major
German
 institutions
as
anchor
tenants
such
as
 Deutsche
Bank,
BMW
and
SAP.
German
 investment
firms
have
been
repackaging
 American
assets
into
their
regional‐ specific
real
estate
funds,
and
they
 currently
rank
2nd
most
active
foreign
 investors
in
US,
just
behind
Japan.
 Japanese
investors
are
still
very
active,
 and
with
economy
finally
on
recovery
 road;
as
well
as
relatively
low
 investment
rental
yield;
Japanese
 institutions
are
find
American


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Who is investing in U.S. Real Estate from Overseas?

properties
of
great
value.
Similar
to
 strategies
described
above,
a
lot
of
 Japanese
institution
owned
properties
are
 leased
to
major
Japanese
corporations,
 this
actually
give
the
owners
more
 confidence
in
some
cases.

 Korean
investors
are
relatively
new
 investors
in
North
American
assets,
 although
individual
investors
have
been
 investing
in
American
properties
for
over
 25
years
now.
Korean
investment
funds
 including
its
sovereign
funds
have
bought
 a
number
of
major
premium
grade
 buildings
in
major
US
metropolitan
areas
 such
as
Chicago,
New
York.
Also,
notably,
 Korean
individual
investors
have
been
 very
active
in
Atlanta
and
Texas;
some
of
 the
major
shopping
malls
are
being
built
 by
Korean
investors
supported
by
Korean
 banks
back
in
Korea.



so
far,
these
activities
are
mainly
 concentrated
in
LA,
San
Francisco,
New
 York
City
and
Silicon
Valley
where
there
 are
large
presence
of
Chinese
 communities.
However,
as
all
major
 Chinese
banks
are
now
public
listed
 companies,
many
are
listed
on
NYSE,
it
is
 widely
expected
they
will
be
as
active
as
 Japanese
investors
in
3
to
5
years
time.
 By W. Brent Virkus, September 13, 2010

Israeli
investors
are
also
coming
into
US
 assets
for
the
first
time,
led
by
Israeli
 institutions.
So
far,
investments
have
been
 around
key
commercial
centers
in
US,
 mainly
New
York
City
and
other
assets.
 Investments
have
been
quite
diverse,
 ranging
from
commercial
towers
to
some
 specialty
properties
such
as
medical
 centers
and
new
business
parks.
 Chinese
banks
–
Chinese
banks
are
finally
 starting
making
their
moves
offshore,
and
 at
grand
style.
We
had
reported
that
 Chinese
banks
have
recently
completed
a
 multi‐billion
dollars
in
UK
in
 redevelopments
of
parts
of
London.

 The
Chinese
banks
are
also
expanding
 their
presence
in
United
States,
lending
 are
likely
to
be
provided
to
residential
 developments
as
well
as
shopping
malls;
 2

Who is Investing in U.S. Real Estate from Overseas?  

Article on what overseas investors are investing in U.S. real estate.

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