According to the latest JLL’s Global Capital Flows data, China has hit a record of $33 billion in overseas commercial and residential property investment in 2016, an increase of nearly 53 percent year-on-year.
While investment in land, offices and hotels account for 90 percent of all Chinese outbound capital in the last three years, the hotel and industrial sectors showed the largest increase in 2016 due to significant transactions in the U.S. in the form of portfolio sales and Chinese appetite for industrial parks.
“Hotel activity last year was boosted by the purchase of Strategic Hotels and Resorts by Anbang Insurance for over $6 billion,” says David Green-Morgan, JLL’s Global Capital Markets Research Director. “China Life Insurance has secured assets across the hotel and office sectors with portfolio purchases from the Starwood Capital Group and an office tower in Manhattan; sovereign wealth fund Chinese Investment Corporation has been active in the office sector in New York as well.”
Land acquisitions by Chinese investors made a comeback last year, with a rise of 44 percent following significant transactions in Hong Kong, Australia and Malaysia.