Commercial Investment Real Estate September/October 2013 - Page 46

INTERNATIONAL
BE AT
Ä Singapore’s
Big Deal
T e Hong Kong-based Park Hotel Group sold the Park Hotel Clarke Quay in Singapore to Ascendas Hospitality Trust for
$238 million, or around $700,000 per room, according to Jones Lang LaSalle. T e sale tops the list of 1H13 hotel transac-
tions in the heated Asian hotel market that transacted $1.3 billion in the f rst six months, almost doubling 1H12 volume.
Cross-Border vs. Domestic Deals
Markets to ¬
Watch
Of ce invest-
ment i n C en-
tral and Eastern
Europe topped €1.7 billion ($2.2 billion)
in the f rst half of 2013, an increase of
more than 100 percent over 1H12,
according to CBRE. Poland and Russia
accounted for about 75 percent of the
deals, although the Czech Republic and
Romania were also active markets.
“Africa is not the new China,
it’s the new Africa,” wrote Christian
Ulbrich, Jones Lang LaSalle CEO of
Europe, Middle East, and Africa in a
recent blog post. Investors of en think
of Africa as one country, like China,
instead of 54 separate nations, he says.
The lack of a common African lan-
guage, government, and infrastructure
limits growth, but “10 years from now,
65 cities in Africa will have more than
1 million inhabitants,” he adds. “Just
from a commercial real estate point of
view, the need for of ce space, shopping
malls, and logistics centres feels quite
overwhelming.” JLL has identif ed 20
African cities that represent the most
likely emerging markets: 11 of them are
located in Egypt, Nigeria, Morocco, and
South Africa.
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44
September | October | 2013
TOP 5 CROSS-
BORDER
MARKETS 1Q13 VOLUME
IN BILLIONS CROSS-BORDER
(%) DOMESTIC
(%)
U.S. $34.5 43 57
U.K. $12.8 62 38
Japan $10.6 23 77
Germany $8.9 55 45
France $5.1 72 28
Source: Jones Lang LaSalle
47%
Office
25%
Retail
Global Market Share
Percentage of world commercial
real estate volume
14%
Industrial
12%
Hotels
Source: Jones Lang LaSalle
2%
Other
0
10
20
30
40
50
Europe Rebounds
Overall European real estate markets are delivering a record year, with market watchers
targeting a year-end total of €142 billion ($188 billion), according to Cushman & Wake-
f eld. Second-quarter volume hit €32 billion ($42 billion), the highest second quarter since
2007. In the past 12 months, retail and industrial had been responsible for most of the deal
growth, but of ce investment has taken over, cornering almost half of the European market.
Commercial Investment Real Estate