A growing number of Chinese institutional investors and property firms are seeking overseas buying opportunities in the real estate sector, but with a much more serious and low profile approach.
"One or two property deals valued at more than $100 million each are expected to be inked in the next six months, and another four to five deals are in the pipeline, the fact is that China has the money, while the overseas markets have quality assets offering good price and value. So, such deals are natural choices," Jeremy Helsby, CEO of Savills, a
UK-based real estate service provider, told in an exclusive interview.
Last month, China Investment Corp (CIC), the nation's $200 billion sovereign wealth fund, announced plans to commit A$200 million ($159.3 million0, for an 8 percent equity stake, to the A$485 million financing plan of Australian property trust Goodman Group.
Helsby said most of the buyers who are in touch with his firm are private companies and institutional investors.
"Their primary choices are high-profile office buildings with good locations in Asia, Australia, UK and the
US, where big corrections have occurred," he said.
According to Helsby, there are no financial barriers at present for Chinese institutional investors in buying overseas properties.
"The major challenges are the hardening price and finding quality products, as Chinese investors have to compete with those from Middle East and other regions," he said.
Besides institutional investors, some of China's leading property developers are also seeking overseas investment opportunities.