The post Foreign investment in Australian commercial property at record high appeared first on Oak Laurel.

Foreign investment in Australian commercial property at record high

Analysis by CBRE has shown that in the September quarter, foreign investors accounted for 56% of the $8.6 billion worth of Australia’s commercial property sales. This is reportedly the highest percentage of foreign buyers in the 10 years of data that have been tracked.

It is thought that the foreign buyers have increased the total sales in the September quarter 8.5% higher than at the same time last year.

Chinese investors are responsible for the majority of the offshore purchases.  The increases of Chinese capital had been initially driven by private investors and developers. However, major institutional investors are also getting involved in the Australian commercial property market. Chinese investors are focusing on major gateway cities such as Melbourne and Sydney.

Major Australian commercial property acquisitions in the quarter include the Chinese sovereign wealth fund China Investment Corporation (CIC) paying almost $2.5 billion for a portfolio of office tower assets sold by the Investa Property Group in what is Australia’s largest ever direct office sale.  The owner of the $8.9 billion Investa platform, Morgan Stanley Real Estate Investing, announced that it has sold the property it owned through Investa.

Singapore’s Ascendas Real Estate Investment Trust was another significant investor during the period, having snapped up a portfolio of 26 logistics properties from GIC in a deal valued at $1.01 billion.

The net investment position of offshore investors now totals $24 billion.


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