Here’s what this really large property investor likes

He’s concerned that as interest rates rise, that will compress the spread between bond yields and capitalization rates, or the ratio of a property’s net operating income to its asset value, which provides an estimated return.

That means GIC has been looking at assets that both have “relatively generous” spreads over bond rates and that have room for income growth over the longer term, he said.

Asked his opinion of various property markets, Goh said when it comes to China, it’s important to ignore short-term volatility and focus on the long term. On Japan, he said to consider the prospects of tourism, adding “it’s huge.”

He believes Australia and New Zealand will remain key markets for GIC, due to their liquidity and depth, while the U.S. market, which is both deep and transparent, “can’t be ignored.”

He considers both Indonesia and Brazil markets to watch, but believes the European property market is difficult as pricing is high, while fundamentals are weak. For those willing to take risks, Goh believes the India market may offer “supernormal profits.”

Those views track with GIC’s recent deals. In October, GIC tied up with developer Tishman Speyer for an office development project in Hyderabad, India. That followed a March deal with developer Brigade Group to buy a property in a Bangalore IT Special Economic Zone.

It also entered a joint venture with Macerich in October to invest in five retail assets in Oregon, California, Arizona and Texas. In May, GIC tied up with the Canada Pension Plan Investment Board to buy a mall in Seoul for a total $263 million. In late 2014, GIC acquired an office building under development in downtown Rio de Janeiro and in Japan, it tied up with Global Logistic Properties to acquire an $8.1 billion logistics portfolio in the U.S.

Last year, GIC tied up with Scentre Group to acquire five New Zealand shopping centers and entered a joint venture with Goodman Property Trust to invest in Auckland’s developing Viaduct Quarter.

—By CNBC.Com’s Leslie Shaffer; Follow her on Twitter @LeslieShaffer1

Article source:

Posted in Property news |

Grandmom willed 3 crore property to Sheena, Mikhail

MUMBAI: Merely six days after the murder of Sheena Bora on April 24, 2012, her maternal grandmother Durgaranee Bora wrote a strange will. On April 30, 2012, she revoked an earlier will and bequeathed the family’s property worth Rs 3 … Continue reading

Posted in Property news |

Government moves on enemy property ordinance, then drops it quietly

On October 21, the government cleared two ordinances, both aimed at speedier settlement of commercial disputes in the country. A week later, the government wanted to get one more ordinance promulgated — one aimed at amending the Enemy Property Act, … Continue reading

Posted in Property news |

Young NRIs spend big on Indian property

Young Indian expatriates in the UAE now account for a majority of property purchases in their home country. NRIs in the UAE aged between 18 and 35 account for 43 per cent of investment in Indian real estate, says a … Continue reading

Posted in Property news |

East India Dock Estate sells for £170m

Register today to get access to, the UK’s number one source for commercial property news. As a registered user you are entitled to access four articles per month and you can also sign up for our newsletters. Get all … Continue reading

Posted in Property news |

Multiple plot scam

TNN | Nov 24, 2015, 08.31 AM IST ALSO ON TOI Recent Messages () X {{/if}} {{if parentusername}} • {{:parentusername}} {{/if}} {{if user.location}} • {{:user.location}} {{/if}} • Just Now {{if user.username ||}} •Follow {{/if}} {{if trimcom}}{{:trimcom}}{{else}}{{:comment.substr(0,500)}}{{/if}} {{if comment.length 500}} … Continue reading

Posted in Plot in India |

Fearing trouble, Huda plot allottees stay away

CHANDIGARH: After the Haryana Urban Development Authority (Huda) decided to lodge police cases against those who got multiple plots allotted in areas developed by it after furnishing false information, many such allottees have decided not to take possession of plots … Continue reading

Posted in Plot in India |

SC fillip to women’s property rights

NEW DELHI: In another prowomen ruling, the Supreme Court has said that a woman’s right over property, given in lieu of maintenance to be enjoyed during lifetime, cannot be taken away after death and she is entitled to bequeath the … Continue reading

Posted in Property news |

Property Prices in India to Remain Resilient in 2016: Fitch

Mumbai: Residential property prices in India should remain resilient in 2016, supported by improving demand, says a report by Fitch Ratings. According to Fitch Ratings’ report titled ’2016 Outlook: Indian Homebuilders’, even as pre-sales in India’s residential segment are likely … Continue reading

Posted in Property news |

Taskforce to resolve property tax issue

NEW DELHI: Union minister Venkaiah Naidu on Sunday announced that a special taskforce has been set up to resolve the ongoing tussle between the municipal corporations and Delhi Development Authority (DDA) over property tax. Naidu said the issue will be … Continue reading

Posted in Property news |