In 2016, China has invested a record of $33 billion overseas amount in commercial and residential property which is 53 per cent higher than the previous year, reported by JLL in its Global Capital Flows data.
The investments are mostly to the hotel and industrial sectors with transactions in the US in the form of portfolio sales and Chinese appetite for industrial parks. Reportedly, 90 per cent of all Chinese outbound capital is invested in land, offices and hotels account.
“Hotel activity last year was boosted by the purchase of Strategic Hotels and Resorts by Anbang Insurance for over $6 billion,” says David Green-Morgan, Director, Global Capital Markets Research, JLL.
“China Life Insurance has secured assets across the hotel and office sectors with portfolio purchases from the Starwood Capital Group and an office tower in Manhattan; sovereign wealth fund Chinese Investment Corporation has been active in the office sector in New York as well.” He added.
There are also a lot of activities in land acquisition from Chinese investors with a rise of 44 per cent following transactions in Hong Kong, Australia and Malaysia. However, China also enhanced investment domestically with 86 per cent of transactions which is 11 per cent higher than the last year.
Source: World Property Journal