China’s Appetite for Global Real Estate

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Oct. 28 (Bloomberg) –- GAW capital U.S. President and COO Tim Walsh discusses trends in global real estate. He speaks with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Have to be diversified.

It is a global trend.

The trend is continuing in real estate.

U.s. investors are underinvested in asia.

How do you reassure your clients that the deals are safe?


We just closed our fourth fund in china right now.

We're very close to closing it.

We raised over $1 billion, very diverse investor base.

It's the fourth fund, too.

They have done very well, very opportunistic.

You asked institutional money, -- u.s. institutional money -- u.s. public pension funds, new jersey was a bit lower than that, but the average was around 7%. you are saying that in asia, it is less the 2%? yes.

The europeans have also had historically more exposure.

That implies that as asia grows, there are going to be more and more asian investors looking for real estate deals.

In europe as well.

There has been some publicity in the last year or so about chinese investors buying in new york city.

There have been -- they have been focusing a lot more on europe.

Is that because europe is cheaper right now?

Cheaper, liquid.

The markets are very liquid.

You can do a transaction very quickly.

U.k. government, u.k. countries have been around for a long time.

It is considered a safe investment area, just like new york city.

One statistic you gave me is that asian office space is the only asset class right now out there in the world that is actually higher than peak.

We talked about 2006, early 2007. the only one.

What does that say about u.s. capital flows?

U.s. investors have not had much exposure to it.

You would have done better in the china real estate market, for instance, or the singapore real estate market, then you would have done here in the u.s. so there are u.s. investors who feel like, we should have been on this five years ago, but letter -- better late than never?

If you look at u.s. investors as a whole, it is under allocated to asian real estate.

You have asian real estate institutions who under allocated the united states.

What are the questions you get all the time about investing in real estate in asia?

It is different from the u.s. you can buy a building in downtown new york city in a quick fashion, in six weeks.

In china, in asia, it takes a lot longer.

Six months is not an atypical time to complete a transaction, sometimes longer.

It's a different process.

If asian institutions start increasing their exposure from 1.7% to 2.5% over the next five years, that is $150 billion in equity that will go into the global real estate market, where it ends up.

This text has been automatically generated. It may not be 100% accurate.


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