asia pacific cross-border capital flows - uli
TRANSCRIPT
Asia Pacific Cross-Border Capital Flows
Dr Megan Walters, FRICS
Head of Research, Asia Pacific Capital Markets, JLL
October 2015
Welcome to Asia, home to half of the world
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What kinds of returns
and investment criteria
are these groups
looking for?
Global macro trends
driving cross border real
estate deals
Who are the major
investors
and why are they
investing in the US?
Capital from Asia Pacific to US
3
Rise in Asian
capital continues
its cross border
push
What investment
strategies
What’s next?
China
Japan
India
Source: Oxford Economics, August 2015
US still the world’s biggest economyNominal GDP in USD
4
0
10
20
30
40
50
2001 2004 2007 2010 2013 2016F 2019F 2022F
US$ trillion
United States European Union China Japan India Australia South Korea Rest of Asia Pac
Asia Pacific investors – more capital to US than Europe
TokyoChongqing
London
Sao Paulo
Mexico City
New York
Delhi Shanghai
Moscow
SeoulBeijing
Hong Kong
Buenos Aires
Rio de Janeiro
Jakarta
Dallas
Shenyang
Tianjin
Guangzhou
Shenzhen
Wuhan
Singapore
Mumbai
ParisIstanbul
Los AngelesWashington DC
Houston
Chicago
Kolkata
Source: JLL, 2013
5
Top 30 Cities by Absolute GDP Growth (PPP), 2010-2020
Where are the world’s fastest growing large cities?
Source: JLL, RCA August 2015
Asia Pacific investors – more capital to US than EuropePurchaser flows – last 18 months
6
$12.2 billion
$8.7 billion
$4.4 billion
$4.1 billion
$3.9 billion
$3.1
billion
$0.2 billion
$7.4 billion
$5.9 billion
$4.1 billion
$3.1
billion
$0.5 billion
$2.8
billion
$1.1 billion
Japan
South
Korea
China
Taiwan
Hong
Kong
Singapore
Australia
USEurope
Investor spectrum
7
HNW,
Private
investors
Formal state
owned,
Sovereign
Wealth Funds
State owned
enterprises/
govt linked
companies
Public & private
insurance
companies
Public & private
pension funds
Developers,
Private equity
Investor strategies
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Logistics Centers
Formal state
owned,
Sovereign
Wealth Funds BG Group Place
Houston
State owned
enterprises/
govt linked
companies
Waldorf Astoria
New York
Public & private
insurance
companies
Public & private
pension fundsColumbia Center
Seattle
Developers,
Private equity
General Motors Building
New York
Zhang Xin (SOHO China)
HNW,
Private
investors
Investor spectrum
9
HNW,
Private
investors
Formal state
owned,
Sovereign
Wealth Funds
State owned
enterprises/
govt linked
companies
Public & private
insurance
companies
Public & private
pension funds
Developers,
Private equity
$4.7 trillion in 1985
10
Source: CBRE Global Investors
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1985 1990 1995 2000 2005 2010 2015 2020
Perc
ent of th
e G
lobal
Inve
sta
ble
Un
ive
rse
Developed Europe
North America
Developed Asia PacificEmerging Asia
Emerging Europe
Latin America
Rest of World
Increasing
share of
investible
universe in AP
$38.4 trillion in 2020
What’s Next in the Global Investable Universe?
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Contacts
Megan Walters PhD FRICS
Head of Research, JLL Asia Pacific Capital Markets
Singapore
+65 6220 3888
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