to combine their capital with others to reap the rewards of real estate equity ownership. These pools take several forms; public and private REITs, limited partnerships and commingled investment funds are all common in the U. S. market.
Often, these pools are raised in advance by investment groups, and investors are asked to evaluate the investment team and strategy, not individual assets. This method of capital raising and asset acquisition has been slow to attract Chinese capital, but it is very common and supported by centuries of real estate and financial law in the U. S.
Over decades, it has proven to be far easier to sell a financial instrument in the U. S.( like a partnership or fund interest), than to sell 70 square meters on the 11th floor of an office building in Shandong Province. Chinese capital is slowly losing their aversion to many of these structures. But, early Chinese investors in the U. S. tended to buy what they could afford individually; this approach may often lead to the purchase of lower quality assets in secondary locations. With a good portion of an investment return coming from appreciation, the quality of asset and location are paramount; but not always sufficiently considered; they are easily overlooked if the direct ownership preference dominates the investment process.
Understanding where each market stands from both a long-term maturation status and a cyclical real estate condition provides a framework for investing in each nation and influences the perception of risk vs. real risk for investors. The difference in mindset, based on historic experience, between Chinese and U. S. investors is clear; being able to differentiate between the two viewpoints is essential to making better financial decisions.
中国资本正在慢慢规避其投资对上述很多结构所产生 的损失 。 但是, 早期进入美国市场的中国投资者往往会 购买其个人能够承担的资产, 这种方式通常会导致投资 者购买二等地段中的低质量资产 。 由于大部分投资收 益来自于增值, 资产质量和地段是最重要的; 但这两个 因素并非总是得到充分考虑 。 如果在投资过程中投资 者倾向于直接所有权, 则会很容易忽视这两个因素 。
从长期成熟度和房地产周期性状况角度理解每个市场 所处的阶段为投资每个国家提供了框架, 并影响着风 险预测和投资者面临的实际风险 。 根据历史经验, 中 国和美国投资者在心态方面存在着明显的差异, 能够 区分这两种观点对于做出更好的金融决策是非常重要 的 。
机构投资者的作用
美国市场中“ 整体资产” 投资倾向的变化使得大型机 构投资者认识到房地产所有权的独特优势, 从而促使 其进入美国市场 。 这些投资者要求建立商业和法律框 架, 消除一些投资风险和不确定性 。 几十年来, 市场可
ROLE OF INSTITUTIONAL INVESTOR
The evolution of the“ whole asset” investment preference in the U. S. market stimulated the entry of large institutional investors that recognized the unique advantages of real estate ownership. In turn, these investors demanded business and legal frameworks that eliminated some investment risk and uncertainty. Over decades, the market became more predictable, and with increased certainty, more institutional investors were attracted to the market.
Today, institutional investors play a critically important role in U. S. real estate markets. They often provide the capital( debt and / or equity) for new development and are large owners of investment real estate. Active institutional investors in the U. S. include public and private pension funds, endowment funds, insurance companies, public and private REITs, private equity funds, institutional asset managers, sovereign wealth funds, and other quasi-institutional foreign capital.
For many, real estate provides a good balance of current income and long-term appreciation. Additionally, private institutional real estate investment has a low correlation to other investment vehicles, meaning its returns do not move in the same direction and / or to the same degree as other investment products. For this reason,
29 THE CHINA INVESTOR