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. ¬ 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