Chinese investors still most active but buyer mix changes

Asian cross-border investment surged by 98% y-o-y to US$ 45.2 bn in H1 2017. The increase was partly due to a one-off US$ 13.2bn purchase of a logistics portfolio in EMEA. Chinese investors remained most active but the composition of buyers changed amid increased scrutiny of cross-border capital flows.

Other major sources of capital including Singapore, Hong Kong, Korea and Japan all saw higher levels of outbound investment. One continuing trend is that of fewer but larger deals.

The Americas and EMEA remained the preferred regions for Asian cross-border investment but turnover within Asia also increased. London, New York and Hong Kong are still the top three destinations.

Chinese outbound investment is still at a nascent stage and is set to continue as a long term trend.

In the short term, the buyer mix is likely to change and the pace of investment may moderate as investors refine their investment strategies and adjust to new rules.

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China leads Asian investors setting sights overseas

Investors are allocating more capital to real estate worldwide, with Asian investors now accounting for five of the 10 biggest cross-border spenders.

Inter-regional investment reached US$19.5 billion in Q2 2017, up 71 per cent from the same period last year.

Globally, China was the third biggest source of cross-border capital into real estate in the first half of the year at US$6.2 billion, behind Germany and the UK. After China, Asia’s biggest spenders were Hong Kong (US$4.9 billion), Singapore (US$4.1 billion), South Korea (US$1.9 billion) and Japan (US$1.6 billion).

Almost all of their capital targeted the world’s three largest and most liquid real estate markets, with the US receiving US$10 billion, the UK pocketing US$6 billion, and Germany US$2 billion.

China star performer in the region

In what could be the biggest single asset deal of the year, Chinese conglomerate HNA acquired 245 Park Avenue, a Midtown office tower, for US$2.21 billion…

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China's Renminbi – Our Currency, Your Problem

Introduction of Case Study:

This case introduces the basics of monetary economics and demonstrating practical applications of monetary policies and exchange rates that pertain to business decisions. Supporting this case study will be a discussion on the exchange rate policy that China has adopted precedent and following 1978, a year in which significant economic liberalization took place. Events within the past couple of years that took place in China concerning their exchange rate period were deemed highly controversial by members of China's trade partners. The first objective of this essay is to trace the history of this discord surrounding China's currency, the Renminbi (RMB), which translates literally into English as "the people's currency". Next, questions from the case will be discussed. Lastly, the case will be made up-to-date with a brief excerpt concerning the current state of affairs surrounding this issue.

Background…

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Four Hour Bangkok Airport Layover – Things to Do In Bangkok Airport

The Bangkok Airport is the one of the major transit airports in Asia and many travellers find that they have to change planes here and have some free time on their hands.

Most flights through the Bangkok Airport have connecting flights scheduled fairly close together, so you won't have long to wait for your next flight. But, even so you are going to want to fill in the time and if you only have a four hour layover, there is not sufficient time to leave the airport and visit Bangkok.

So what can you do if you have a Bangkok Airport layover, before changing to another international flight?

Well the first thing is to make sure that you are checked in for the continuing flight and have been issued with boarding passes. From then on the time is your own, but here are some available options.

Airline Lounges

A First or Business class passenger will have access to their Airline Lounge. Most lounges are set up with access to the internet, have snacks and…

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Thailand’s hotel investment exceeds THB10b ($324m) in the first half of 2017

Direct investment in Thailand’s hotel sector reached THB10.7 billion in the first half of 2017, according to JLL Hotels & Hospitality Group.

This figure is attributed to four major transactions, comprising five hotels in Bangkok and Pattaya.

“As a comparison, 2016’s full-year investment volume was only THB 9.6 billion,” says Mike Batchelor, Head of Investment Sales Asia, JLL Hotels and Hospitality Group.

“The robust investment activity recorded in the first half reflects investors’ continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country’s tourism industry.”

“Buyers comprised of both domestic and regional investors, with the latest hotel acquisitions being made by Carlton Hotel Group and Hotel 81, both from Singapore. This reaffirms Thailand’s position as one of the region’s most attractive hotel investment destinations,” adds Mr. Batchelor.

In June, JLL facilitated Hotel 81’s acqui…

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Self storage moves into the mainstream

The self storage industry has a brief history in Asia compared with that in the more mature markets in Australia, Europe and North America, but evolution is following to this part of the world as the notion of storing personal belongings elsewhere catches on.

Self storage also provides a flexible alternative for businesses that do not want to sign long- term leases and prefer to rent an appropriately sized space from a service provider, instead of a large warehouse where much of the space may go unused.

Outside of Australia, the industry is most established in densely populated regional cities such as Hong Kong, Singapore and Tokyo.

However, the concept is also catching on in China and Taiwan, and in very early development stage in India and parts of Southeast Asia.

Self storage markets in Asia Pacific are quite diverse and facilities on offer may vary substantially from one market to the next.

In the broadest classification, facilities ar…

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Southeast Asia: showcasing the future of work

A youthful population. The highest regional economic growth in the world. A technologically savvy population that is rapidly modernising. All these are characteristics of Southeast Asia – making it an ideal test bed for concepts in real estate.

JLL recently launched its Future of Work model, a framework for looking at the future of the workplace and its impact on real estate.

The model includes factors that property occupiers – and investors – should consider when creating workplaces or physical environments.

Ideally, these should be workplaces and environments that support individuals achieving their ambitions in an ever-changing, uncertain operating environment, and can be applied across asset classes.

Our recent report, ‘New Urban Models in a Youthful Southeast Asia’ showcases new urban concepts that demonstrate the Future of Work in practice.

They provide inspiration for both occupiers, developers and investors about what is really pos…

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The Case of Thai Joint Venture With Japanese Partner in Construction Business

Literature Review

Business in the 21st century is increasingly connected with shifting borders. International partners will become standard practice as the product life cycles shorten and immediate distribution become imperative. As business is increasing its globalization, alliances multinational firms are becoming more popular. Cooperation between international firms can take many forms such as cross-licensing of proprietary technology, sharing of production facilities, co-funding of research projects, and marketing of each other products using existing distribution networks (Griffin and Pustay, 2005). Such forms of cooperation are known as strategic alliances, business arrangements wheree two or more firms choose to cooperate for their mutual benefit. A joint venture is a specific and more formal type of strategic alliance.

2.1 Defining International Joint Venture (IJV)

An international joint venture (IJV) is a special type of strategic a…

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Singapore Trillion Global invests over 1.6 billion baht in Singha Estate Condominium Projects

Singapore capital group Trillion Global Pte. Ltd. invests over 1.6 billion baht in Singha Estate Condominium Projects, signaling high confidence in Thailand’s property industry

In one of the latest developments that underlines foreign investors’ great confidence in Thailand’s property industry, Singapore company Trillion Global has invested more than 1.6 billion baht in 2 of Singha Estate PCL’s condominium projects: The ESSE Asoke and The ESSE at SINGHA COMPLEX.

Singapore’s leading real estate investment company Trillion Global, which has investment portfolios in many countries around the world, primarily in Asia and Europe, has given its stamp of approval to the property market in Thailand with continuing investments worth a combined 1.66 billion baht in condominium projects developed by Singha Estate.

Mr. William Loke, Managing Director of Trillion Global said, “Thailand has the potential to become a regional hub for ASEAN investment while…

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