Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Friday, 08 September 2017

Chinese Government Restrictions May Impact U.S. Property Investment Market

The Chinese government last month issued guidelines that would restrict Chinese companies from investing in overseas commercial real estate. While the move could have an impact on the U.S. market, where Chinese investors have become substantial players, it likely would affect mostly trophy properties in major markets.

Commercial Real Estate Direct Staff Report

The Chinese government last month issued guidelines that would restrict Chinese companies from investing in overseas commercial real estate.

The move could have an impact on the U.S. market, where the Chinese have become major players, especially in Manhattan, Los Angeles and other large markets. But given the scope of Chinese investment, the impact would be only at the margins and would affect mostly trophy properties in major markets.

Over the past seven years, Chinese investors have plowed $88.4 billion into foreign properties, according to Real Capital Analytics, tripling their investments annually. They own 1,570 properties in foreign countries, with more than half in the U.S.

They invested a record $19.2 billion last year, the most among foreign investors. But that represented less than 4 percent of the country's commercial property sales volume.

During the first half, investment activity from China declined 7 percent to $5.4 billion from last year. That was still enough for a second-place finish, after Canada, among foreign investors in U.S. properties.

China's National Development and Reform Commission has banned overseas investments in some sectors such as the gambling industry and encouraged investments in infrastructure projects designed to connect China to European and Asian countries. Although it did not ban commercial real estate deals, it said it planned to take a closer look at them.

"I think that for the short term, you're going to see fewer, if any, very high profile...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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