Asia-Pacific sees record high cross-border realty deals

Cross-border real estate investment in Asia-Pacific reached highest level in the second quarter since the global financial crisis in 2008, a report from the global real estate service provider CBRE showed on Wednesday.

From April to June, the cross-border property turnover surged by 109 percent quarter-on-quarter to $7.7 billion, mainly driven by western real estate funds, according to CBRE.

Fund raising market continues to improve. Five Asia-Pacific focused private equity real estate funds have each raised more than $500 million so far in 2014, the CBRE research showed.

The second quarter also saw a number of international institutional investors enter the region, including the State Oil Fund of Azerbaijan (SOFAZ), which acquired an office asset in Seoul, its first purchase in Asia-Pacific.

South Korea recorded its largest-ever quarterly increase by foreign investors, up 572 percent than the previous quarter. Notable deals included Kohlberg Kravis Roberts’ and LIM Advisors’ joint purchase of Twin Towers, a prime office building in Seoul CBD, for $496 million.

New Zealand also saw increased activity from foreign investors in the second quarter. Buyers included the Canada Public Sector Pension Investment Board, which acquired a portfolio of 18 commercial properties for NZ$1.0 billion.

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