foreign capital increases its foothold in china’s property market
may 9, 2019
shanghai, may 9, 2019 – cushman & wakefield, a leading global real estate services firm, recently attended the rics china summit 2019 in shanghai, titled ‘property investment and management’ as a platinum sponsor. at the event, francis li, international director, vice president, greater china and head of capital markets, greater china at cushman & wakefield, delivered a keynote speech on the trend of increasing foreign investment in china’s property market. he also shared his expertise and insight regarding the industry’s development during the panel discussion.
francis li, international director, vice president, greater china and head of capital markets,
greater china, cushman & wakefield
in his speech, titled “foreign investment heating up: the outlook for china’s real estate investment in 2019,” francis li analyzed the rocketing trend in property of global capital in the asia-pacific region. he pointed out that such an uptrend was mainly a result of foreign investors actively optimizing investment portfolios on a global scale to capitalize on china's relatively high economic growth compared with other markets like europe and the united states.
according to cushman & wakefield, in 2018, shanghai ranked eighth among the most popular destinations for global investment, drawing more than usd 10 billion of capital from several notable pe funds in the past few years. mr. li added, some global funds, who previously invested through fund managers, have started investing directly. for example, german insurance giant allianz entered china’s re market last year, actively acquiring assets in beijing and shanghai. besides, foreign funds have also teamed up more in club deals. in 2018, gaw capital, goldman sachs and great wall capital management worked together to acquire a large retail portfolio from link reit in hong kong. in 2019, the two joined forces with blackstone to buy another set of shopping malls from link. phoenix property investors also partnered with blackstone to acquire three shopping malls from wheelock in tseung kwan o, hong kong.
in his speech, mr. li also mentioned that global institutional investors will continue to play an active role in 2019, with more overseas capital and new players expected to enter china. in terms of domestic capital, due to government regulation and control on the re market, developers are anticipated to dispose some non-core assets to raise funds for new projects.
in the subsequent panel discussion, mr. li analyzed the latest industry trends, the issue of over- and below-valuation, and the changes new technology is bringing to the market. new technology has brought drastic changes to the strategies and efficiency of marketing, as well as the transaction process itself.
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about cushman & wakefield
cushman & wakefield (nyse: cwk) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. cushman & wakefield is among the largest real estate services firms with 51,000 employees in approximately 400 offices and 70 countries. across greater china, there are 20 offices servicing the local market. the company won four of the top awards in the euromoney survey 2017 and 2018 in the categories of overall, agency letting/sales, valuation and research in china. in 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. to learn more, visit www.cushmanwakefield.com or follow @cushwake on twitter.
for further information, please contact:
mandy qian
director, marketing & communications, greater china
tel: 86 10 8519 8040
mandy.qian@cushwake.com
