China gains ground as source of new real estate investment

China is gaining ground as a source of new real estate investment in Europe, according to the 2013 Emerging Trends report published today.

Europe is a key destination for tourists from China and other emerging markets and tailoring retail, hotels and leisure investments for this spend can bring rewards, the report noted.

The annual Emerging Trends report is published by the Urban Land Institute and PwC and is based on interviews with over 500 respondents.

Other 'best bets' for 2013 include the following:
* Concentrate on value-added locations in key cities - Core properties might be hard to find but there are pockets in key cities that appeal to dominant occupiers such as telecommunications, media and technology (TMT) firms and creative enterprises.

* Hunt for institutional-quality properties in suspended animation - Banks are more willing to release good assets in need of capital expenditure and clever asset management, before values decline further.

* Look for deals in Ireland and Spain - Develop relationships in the right places. Ireland may be most accessible through lenders outside of NAMA, while in Spain, now is the time to start conversations with key players such as SAREB.

* Opportunities from buyers of distress - Buy loans and properties out of larger portfolios acquired by opportunity funds and use management expertise to increase income and value.

* Team up with a local player in a local market - Find a company in a secondary city that can provide intelligence about where bargains can be found, which assets for sale should be investigated or avoided and what properties are about to come to market.

* Refurbish buildings to green standards - Seek out good buildings with slight “blemishes” and turn them into strong performing green assets.

Click below to read the full report: