{"id":24869,"date":"2016-09-04T18:13:33","date_gmt":"2016-09-04T11:13:33","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=24869"},"modified":"2016-09-04T16:28:56","modified_gmt":"2016-09-04T09:28:56","slug":"middle-eastern-sovereign-funds-spend-less-in-overseas-commercial-property-investments","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/middle-eastern-sovereign-funds-spend-less-in-overseas-commercial-property-investments\/","title":{"rendered":"Middle Eastern sovereign funds spend less in overseas commercial property investments"},"content":{"rendered":"


\nThe panic in financial markets, which followed Britain’s shock Brexit vote and a slowdown in the Chinese economy, has prompted Middle Eastern sovereign wealth funds to rein in their spending on high profile overseas office blocks and hotels.The amount of money being spent by Middle Eastern sovereign wealth funds and big name investors on commercial property in the UK, Europe, Asia and the USA plummeted in the first half of 2016, new research shows.According to CBRE, which tracks the amount of commercial real estate bought by the likes of Qatar Investment Authority and Abu Dhabi Investment Authority, wealthy Middle Eastern investors spent less than US$50 billion on overseas property in the first six months of 2016 – down from a staggering US$156 billion during the whole of 2015.”The uncertainty in global financial markets that has followed the UK’s vote to leave the EU means that overall commercial real estate investment is almost certain to be down in 2016,” said Michael Haddock, senior director of global research at CBRE.Nonetheless, key investments made during the period included Adia’s HK$18.5bn purchase of a 50 per cent stake in Hong Kong’s Grand Hyatt, Renaissance Harbour View and Hyatt Regency hotels.By the end of 2015 the global economy appeared more risky to sovereign wealth funds as the Chinese economic slowdown and a tightening of US monetary policy deterred sovereign wealth funds – which accounted for 38 per cent of all purchases between 2007 and 2015 – to cut spending.In November, after more than 20 years Adia closed its London office and earlier this year QIA put part of its Canary Wharf estate on the market – although it has been recently rumoured to be thinking of pulling the sale.CBRE said that funds were switching focus away from the UK where they have historically invested the lion’s share of their cash to Asia and the USA.The broker estimates that Middle Eastern sovereign wealth funds spent just $200 million in the UK in 2015.”This may have been foresight regarding the outcome of the UK’s EU referendum,” said Mr Haddock. “However, it is more likely to be the result of falling economic growth in the UK and portfolio balancing after very high UK investment in 2013 and 2014.”JLL reported earlier this year that Britain’s decision to leave the European Union in June has prompted foreign investors, including those from the Middle East, to eschew their usual investment choice, London.It said that cross-border capital flows into London property fell by 44 per cent in the first six months of the year compared with the same period a year earlier as investors worried that Brexit would force banks and other financial institutions to move their headquarters away from the City of London leaving thousands of square feet of office space empty.lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Middle Eastern sovereign funds spend less in overseas commercial property investments<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The panic in financial markets, which followed Britain’s shock Brexit vote and a slowdown in...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-24869","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-6t7","jetpack-related-posts":[{"id":24877,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/middle-eastern-sovereign-funds-spend-less-on-overseas-commercial-property-investments\/","url_meta":{"origin":24869,"position":0},"title":"Middle Eastern sovereign funds spend less on overseas commercial property investments","date":"September 4, 2016","format":false,"excerpt":"\r The panic in financial markets, which followed Britain's shock Brexit vote and a slowdown in the Chinese economy, has prompted Middle Eastern sovereign wealth funds to rein in their spending on high-profile overseas office blocks and hotels.The amount of money being spent by Middle Eastern sovereign wealth funds and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":24150,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/regions-wealthy-to-continue-diversification-into-overseas-property\/","url_meta":{"origin":24869,"position":1},"title":"Region's wealthy to continue diversification into overseas property","date":"August 27, 2016","format":false,"excerpt":"\r The price of oil may have fallen but Middle Eastern property investors are set to continue to pump billions of dirhams into big-name properties overseas, despite slowing global growth.Analysts predict that although property prices locally are falling, the amount of money raised by sovereign wealth funds, private companies and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4436,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/middle-east-investors-remain-active-abroad-despite-sell-offs\/","url_meta":{"origin":24869,"position":2},"title":"Middle East investors remain active abroad, despite sell-offs","date":"February 11, 2016","format":false,"excerpt":"\r \r The weak oil price has pushed Middle East government budgets into significant deficits, with some starting to sell off assets to balance their finances. Middle Eastern investors have also been quite active in European real estate in recent years and the question is, would they also start to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":57112,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/regional-sovereign-wealth-funds-look-to-invest-in-real-estate-for-liquidity\/","url_meta":{"origin":24869,"position":3},"title":"Regional sovereign wealth funds look to invest in real estate for liquidity","date":"June 6, 2017","format":false,"excerpt":"\r Middle Eastern sovereign wealth funds are targeting real estate investments to generate yields in the low interest-rate environment and own a liquid asset as withdrawals continue, according to investment management firm Invesco.More funds were looking at real estate for its yield-generating qualities for two reasons, said Alex Millar, Invesco's\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":120145,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/foreign-funds-chase-retail-assets-in-housing-estates-as-they-offer-better-value-compared-to-prime-streets\/","url_meta":{"origin":24869,"position":4},"title":"Foreign funds chase retail assets in housing estates as they offer better value compared to prime streets","date":"February 3, 2021","format":false,"excerpt":"\r Overseas institutional investors are focusing on acquiring retail properties in Hong Kong\u2019s major housing estates, as they expect businesses catering to local communities to stay resilient compared to the uncertain outlook for retailers in the tourist belts, according to property consultants.\u201cSmart money from the US and Middle Eastern sovereign\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35036,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/us-still-of-interest-for-middle-east-real-estate-investors\/","url_meta":{"origin":24869,"position":5},"title":"US still of interest for Middle East real estate investors","date":"November 20, 2016","format":false,"excerpt":"\r Analysts are predicting that Middle East sovereign wealth funds will continue to buy big chunks of real estate in America's biggest cities despite Donald Trump's election victory. Over the past year, the funds, which have traditionally invested in high-profile London buildings such as the Shard and the Berkeley Square\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/24869"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=24869"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/24869\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=24869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=24869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=24869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}