A range of asset classes and countries are targets for Far Eastern money, Isobel Lee writes in the latest edition of EuroProperty, part of the PropertyEU Group.
Singaporean investors are increasingly nimble in navigating European real estate, and their focus on returns means they will consider a broad range of asset classes, says Oliver Watt, director in Savills’ cross-border investment team.
‘The current wave of Singaporean investors targeting Europe are focused almost exclusively on returns, and prepared to brave a range of markets and asset types,’ says Watt.
‘Sovereign wealth funds have dominated investment outflows from Singapore in the past, and continue to do so,’ he adds. ‘That money is found in a broad range of vehicles, and they are constantly on the hunt to invest in other markets. Singapore itself is essentially a small city state and they need to diversify, with a relatively limited amount of assets in their home market.
‘But there’s also an increasing number of private investors coming into play, as well as a growing appetite from domestic, retail investors.’
Recent deals include Singapore-listed Global Logistics Properties acquiring European logistics platform Gazeley for €2.4 bn, and the purchase by Frasers Centrepoint – one of Singapore’s largest listed companies – of a portfolio of four business parks in the UK covering 455,000 m2 for £686 mln (€756 mln).
