2016年2季度亚太地区投资新趋势

ASIA PACIFIC INVESTMENT TRENDSQ2 2016Asia Pacific Investment TrendsLarge deals push up transaction volume by 19% q-o-q Overall market remains quietSolid cross-border investment activity continuesFund-raising activity slowsInvestors set to turn more cautious towards sourcing deals03 Overview04 Capital Markets05 China06 Hong Kong07 Taiwan08 Japan 11 Vietnam12 Thailand13 Indonesia14 Singapore15 India16 AustraliaTable of Contents09 South Korea10 The Philippines 17 New Zealand18 ContactsThe completion of several large deals pushed upcommercial real estate transaction volume by 19% q-o-q but the overall market remained quietOverview• The completion of several large deals pushed up Asia Pacific real estate transaction volume by 19% q-o-q in Q2 2016 to US$23.1 billion. Overallmarket sentiment remained quiet, however, with the top 10 deals accounting for 30% of investment turnover. • Cross-border investment activity remained robust. Strong activity from international and regional institutional investors pushed up investment turnover to US$8.6 billion, an increase of 73% q-o-q. In Singapore, the Qatar Investment Authority purchased Asia Square Tower 1 for US$2.5 billion, the largest ever o ffice transaction in Asia Pacific. • Investors will be slower to source deals in H2 2016 and take longer tocomplete transactions given heightened geopolitical risks from the recent terrorist incidents in Europe; the Brexit; and the upcoming US presidential election. Investors will display a stronger appetite for core assets providing steady income streams, a trend that will exert downward pressure on yields. Source: CBRE Research, Q2 2016.Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercial sectors.Total Commercial Real Estate Investment Turnover in Asia Pacific204060801001205 10 15 20 25 30 35 40 200520062007200820092010201120122013201420152016 U S $ b i l l i o nU S $ b i l l i o nAsia Pacific Rolling 4 quarters total (RHS)Q 2Fund-raising activity slowed this quarter butexperienced fund managers continued to successfully raise capital. Investors are set to adopt a more cautious approach in the second half of the yearCapital Markets• Fund raising activity in Asia Pacific slowed this quarter. However, fund managers who can e ffectively deploy capital and meet their target returns continued to attract interest. Two experienced regional fund managersexceeded their fund raising target by more than 20% upon closing in Q2 2016. • The fund raising environment will remain challenging in H2 2016 due to uncertainty over the next interest hike in the U.S. Investors will adopt a more cautious approach towards committing their capital to funds. Smaller fund managers with less experience in the region will take longer to raise capital. • Typical LTV ratios remained largely unchanged but banks’ lending attitude registered a mild adjustment across di fferent markets. Banks in Hong Kong turned more aggressive towards lending for residential properties, while those in Japan displayed a stronger interest in providing loans to the o ffshoremarket. Banks in Australia are being more selective towards transactions and increasing their lending margins for those transactions they choose to do. *Interest rate spread for borrowers which have strong relationship with banksSource: CBRE Research, S&P Capital IQ and Various Central Banks and Monetary Authority, Q2 2016.Typical commercial property lending terms (Q2 2016)MARKETLTVREFERENCE RATEQ-O-Q CHANGESPREADQ-O-Q CHANGE IN LENDING RATEAustralia 60-65% 3M Bank Bill Swap Rate:1.96% - 30 bps 175-225 bps Down China 50% 5-year base lending: 4.75%0 bps 50-120 bps Flat Hong Kong 40% 3M HIBOR: 0.57% + 1 bps 230-280 bps Flat Japan 60-80% 3M TIBOR: 0.07% - 3 bps 40-200* bps Down Singapore 50-70% 3M SOR: 0.77% - 4 bps 175-300 bps Down South Korea 60-70% 3M CD: 1.37% - 24 bps 205-255 bps Down Taiwan60-70%1-year deposit: 1.04%- 9 bps170-240 bpsDownRetailSectorYieldPriceOfficeINVESTOR DEMANDChinaInvestment sentiment continued to rebound asstronger activity from domestic investors pushed up transaction volume by 39% q-o-qDomestic investors drove the market this quarter, accounting for over 90% of total turnover during the period. Foreign buyers with existingexposure to the market continued to seek opportunities. However, their pace of investment has slowed due to the further depreciation of the RMB and competition from domestic groups.Domestic property companies were active this quarter. Noteworthy transactions included ChengliProperty’s acquisition of the Amenity Garden Hotel in Shanghai, a serviced apartment building. The company subsequently disposed of individual units in the property on a strata-title basis. Two similar transactions were recorded this quarter.Corporations continued to display solid demand for en-bloc o ffices and retail properties in tier I cities. Most assets were acquired for self-use purposes.Investors are focusing on Grade A o ffices indecentralised business districts in tier 1 cities with good transportation links, such as Shanghai’s Zhabie and North Bund area.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESDomestic investors are expanding their focus to consider prime assets in selected tier II cities which still enjoy strong fundamentals. The recovery in the residential market is providing profit-taking opportunities for service apartment landlords to dispose of individual units on a strata-title basis.MAJOR TRANSACTIONS Shimao Department StoreRetail – CNY 2.97bn (USD 445mn) BUYER: LeTVAmenity GardenServiced Apartment – CNY 2.7bn (USD 404mn) BUYER: Shanghai Chengli Property Longhua Industrial Redevelopment ProjectIndustrial – CNY 2.0bn (USD 300mn) BUYER: Evergrande Real Estate GroupCOMMERCIAL REAL ESTATE TURNOVER5 10 15 20 20122013201420152016 H1U S $ b i l l i o nSource: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercial TIER-1 CITIES IndustrialThe main opportunities lie in well-performing assets in tier I cities with a good catchment area.Modern logistic facilities in key export andmanufacturing hubs are the key focus at present.Domestic InvestorsForeign InvestorsProperty CompaniesCorporationsShenzhen Beijing ShanghaiIndustrialRetailSector Yield PriceOfficeINVESTOR DEMANDHong KongThe absence of major o ffice transactions pushed down investment turnover to the lowest quarterly total since Q1 2014Local investors with considerable experience and operating knowledge retained a solid appetite for retail properties in neighbourhood areas. Several such transactions were completed this quarter, including Link REIT selling seven assets to various local investors for acombined total of HK$ 2.0 billion. Retailers driven by domesticconsumption have been less a ffected by the retail market downturn, providing this segment with stable income support.Foreign groups continued to seek opportunities. Major transactions included China Resources’ purchase of the NWS Kwai Chung Logistic Centre, a high-specificationwarehouse, for HK$ 3.75 billion. Chinese corporations retained a strong appetite for en-bloc o ffice buildings for self-use. Major deals included Cheung Kei Group’sacquisition of an o ffice building in Kowloon in July.Investors still prefer Grade A o ffices indecentralised locations, particularly in areas set to benefit from infrastructure improvements.6-MONTH OUTLOOK & OPPORTUNITIESLocal corporates will support investment activity in strata-title and whole floor offices. Chinese corporates will focus on acquiring en-bloc offices.Shopping arcades and malls in areas driven by domestic consumption are attracting strong demand from experienced local investors.MAJOR TRANSACTIONS NWS Kwai Chung Logistic CentreIndustrial – HKD 3.75bn (USD 483mn) BUYER: China ResourcesThe MarkO ffice – HKD 560mn (USD 72mn) BUYER: SiToy Group 79/F, The CentreO ffice – HKD 500mn (USD 64mn) BUYER: UndisclosedCOMMERCIAL REAL ESTATE TURNOVER5 10 15 20 20122013201420152016 H1U S $ b i l l i o nNeighbourhood shopping centres and retail podiums are the main opportunity.The end of the revitalisation scheme will limit opportunities in en-bloc factory buildingsDomestic InvestorsForeign InvestorsCorporationsSheung Wan Kwai Chung Kwun Tong EMERGING TRENDSSource: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercialRetailSectorYieldPriceOfficeINVESTOR DEMANDTurnover was boosted by one major transaction but the overall market was quiet as investors moved into wait-and-see mode following the presidential electionDomestic investors were largely inactive this quarter as most buyers adopted a cautious approach following the recent presidential election. The new government’s agenda and pledge to improvediplomatic ties with China has yet to impact the market.The largest deal this quarter saw Taiwan Life acquire the Hi Lai New World Centre in Kaohsiung for TWD 16.5 billion, which boosted quarterly investment turnover.Other investment activity was driven by end-users in the technology sector purchasing o ffices and factory buildings for self-use. Highlights included the pre-sale of an en-bloc o ffice acquired by WPG Holdings, an electronics distributor, marking the largest o ffice transaction thisquarter. The current low interest rate environment has helped such firms expand their real estate portfolios to accommodate an increase in capacity.Long-term core investors are focusing on Grade A and B o ffice properties in non-core locations of Taipei.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESLandlords that are restructuring their portfolios have turned more flexible towards pricing. This will exert downward pressure on office prices. Occupancy in hotels has fallen amid slowing tourist arrivals. Investors will need to have operating knowledge and a well-recognised brand to succeed in this sector.MAJOR TRANSACTIONS Hi Lai New World CentreHotel & Retail – TWD 16.5bn (USD 511mn) BUYER: Taiwan Life InsurancePre-sale O ffice in Nangang DistrictO ffice – TWD 6.6bn (USD 203mn) BUYER: WPG Holdings 21 & 23 Ziyou Street, Sanchong Dist.O ffice – TWD 800mn (USD 25mn) BUYER: Jiun Yeong TechnologyCOMMERCIAL REAL ESTATE TURNOVER1 2 3 4 5 20122013201420152016 H1U S $ b i l l i o nTIER-1 CITIES IndustrialInvestors are advised to consider shopping centres or department stores in areas outside Taipei.Modern logistics development in Greater Taipei are the main opportunity at present.CorporationsNew Taipei City Kaohsiung City Taipei City InstitutionsDomestic InvestorsSource: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercialRetailSectorYieldPriceOfficeINVESTOR DEMANDDomestic and foreign buyers continued to display strong demand but the lack of assets for sale pushed down transaction volume by 9% q-o-qJapanese buyers continued toaccount for the bulk of activity. The highlight this quarter was local developer Hulic’s purchase of the Grand Pacific Le Daiba hotel in Tokyo's Odaiba waterfront district for an estimated JPY 67 billion (US $600 million).Interest from overseas investorsremained solid and the total value of acquisitions by foreign buyers was up 8% y-o-y this quarter.The period saw more enquiries from domestic institutional investors following the implementation of negative interest rates in January. Activity by J-REITs weakened this quarter as it became morechallenging for them to identify yield accretive assets.Some foreign property funds are considering selling assets acquired in 2012/13 as they look to lock in profits. However, many are instead opting to refinance.Well-located assets in Central Tokyo and major regional cities such as Osaka, Nagoya and Fukuoka remain the key focus for investors.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESFundamentals in regional cities remain solid and are attracting investors, not just because of the lack of stock in Tokyo.Among investors there is still a strongwillingness to consider opportunities across the entire investment spectrum and a general trend towards greater asset diversification.MAJOR TRANSACTIONS Grand Pacific Le DaibaHotel – JPY 67bn (USD 651mn) BUYER: HulicHarumi Island Triton Square O ffice Tower YO ffice – JPY 51bn (USD 496mn) BUYER: Fosun InternationalHigashioogishima ABIndustrial – JPY 35.7bn (USD 347mn) BUYER: RedwoodCOMMERCIAL REAL ESTATE TURNOVERTIER-1 CITIES IndustrialInvestors may consider purchasing street shops along the main streets of major cities along with suburban shopping malls in Tokyo.Solid occupier demand is stimulating investor interest in logistics facilities in the Tokyo metropolitan area.Property FundsDomestic InvestorsForeign InvestorsREITsInstitutions10 20 30 40 20122013201420152016 H1U S $ b i l l i o nDiaba, Tokyo Hrumi, Tokyo Kawasaki Source: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercialRetailSectorYieldPriceOfficeINVESTOR DEMANDSouth KoreaTransaction volume declined 35% q-o-q but investor demand remained firm and more assets were made available for saleDomestic groups across a wide range of investor types continued toaccount for the bulk of activity but local conglomerates remained net sellers.Interest from o ffshore buyers was firm. Many are considering value added and opportunistic plays but these are challenging to identify. Large domestic corporationscontinued to restructure their real estate holdings throughsecuritisation. This is driving an increase in the number of o ffice buildings made available for sale. Domestic asset managementcompanies were active this quarter. Examples included Mastern Investment Management’sacquisition of a building in the CBD from a local corporation.South Korean life and general insurance firms continued to eye opportunities, with one major deal completed this quarter.Well-tenanted o ffice assets in Seoul with master lease terms or lease-back agreements from vendors are the key focus.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESMany owners believe now is a good time to sell. More assets, particularly office buildings, have been put on the market in recent quarters.Investors are pursuing office buildings with repositioning potential such as those which can be fitted with a retail component.MAJOR TRANSACTIONS Limkwang BuildingO ffice – KRW 315bn (USD 273mn) BUYER: NH Life Nara BuildingO ffice – KRW 208bn (USD 181mn) BUYER: KORAMCO Donghwa BuildingO ffice – KRW 117bn (USD 102mn)BUYER: Mastern Investment ManagementCOMMERCIAL REAL ESTATE TURNOVERTIER-1 CITIES IndustrialAside from o ffice-to-retail conversions in prime locations, the main opportunities lie in standalone retail buildings in core areas.Investors are concentrating on high-end logistics facilities in Seoul or in surrounding cities providing good yields.Property FundsDomestic InvestorsForeign InvestorsCorporations2 4 6 8 10 20122013201420152016 H1U S $ b i l l i o nSeoul Seoul Seoul InstitutionsSource: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercialRetailSectorYieldPriceOfficeINVESTOR DEMANDThe PhilippinesMarket sentiment remained upbeat following thepeaceful election process. Both local and foreign buyers displayed a strong appetite for commercial propertyInvestment activity was led bydomestic groups as overseas buyers remain somewhat constrained by rules governing foreign investment and ownership of property. The period saw local groups purchase several older buildings in Makati for redevelopment.Interest among foreign investors remained solid, with most buyers focusing on acquiring o fficebuildings or forming joint ventures with local developers for theconstruction of residential projects. Some are providing debt and equity to second tier domestic developers. Among local developers the main focus is on acquiring land in Metro Manila and other major cities such as Cebu for BPO and residential condominium development. Authorities have resumed attempts to launch the domestic REIT market. Legislation was originally passed in 2009 but has yet to be implemented.The major investment opportunities lie indeveloping BPO o ffice buildings in Fort Bonifacio Global City, fringe Makati and Cebu.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESThe new government has embarked upon a decentralisation push and is promoting new infrastructure and business expansion into secondary cities and the provinces.Clark is a major investment hotspot at present. There are plans to expand the city’s airport to alleviate congestion in ManilaMAJOR TRANSACTIONSLas Pinas Latex Site, Development Site – USD 18mn, BUYER: 8990 HoldingsTIER-1 CITIES IndustrialLocal developers are focusing on shopping centre and community mall development in Metro Manila and the provinces.There are opportunities for foreign investors to form partnerships with local developers to jointly develop industrial parks.Domestic InvestorsForeign InvestorsREITsProperty CompaniesLas PinasRetailSectorYieldPriceOfficeINVESTOR DEMANDVietnamInvestment activity remained robust in spite of the slower economy. The period saw fierce competition between foreign and local buyersActivity among domestic investors was solid. Vietnamese groups enjoy an edge over foreigners as they have stronger ties with local sellers and can make bigger down payments. The period also saw local buyers purchase assets from overseas investors.Foreign investors were very active. O ffices and hospitality are the main focus, with interest led by Japanese and Singaporeans. Major deals included Mapletree’s purchase of Kumho Asiana Plaza Saigon 1 in Ho Chi Minh City for around US$100 million, marking the biggesttransaction in the city in five years. Recent quarters have seen Japanese developers forming joint ventures with local partners to construct mid to high end condominium projects. Other activity by foreign groups is being led by South Koreancompanies investing in development and manufacturing facilities.Most buyers are eying Grade A o ffice buildings in the Ho Chi Minh City and Hanoi CBDs but the lack of stock has seen more buyers look at Grade B.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESThe hospitality sector is attracting solid interest as occupancy and tourism arrivals improve. Foreign investors are displaying strong demand for hotels in major cities and resort destinations.Major new infrastructure works in the north of the country are luring industrial and manufacturing investment.MAJOR TRANSACTIONSKumho Asiana Plaza, Mixed-use – USD 107mn, BUYER: MapletreeDuxton Hotel Saigon, Hotel – USD 49mn, BUYER: New Life RESedona Suits Hanoi , Hotel – USD 22mn, BUYER: BRG GroupTIER-1 CITIES IndustrialThere are opportunities for foreign investors to form joint ventures with domestic groups for the development of new malls in Ho Chi Minh City.Forming joint ventures for development is the only option as industrial parks are owned by domestic investors who are under no pressure to sell.Domestic InvestorsForeign InvestorsProperty CompaniesCorporationsHCMC HCMC HanoiRetailSectorYieldPriceOfficeINVESTOR DEMANDThailandThe weak economy continued to negatively impact the real estate market but investors retained a strong appetite for income-producing propertyThe market continued to bedominated by local investors. High quality assets available for sale received sustained interest from multiple buyers.More foreign investors, led by Japanese, are looking at forming joint ventures for new o fficedevelopment as occupier market fundamentals strengthen further. Large domestic developers continue to focus on acquiring CBD land sites for new condominiums. No major sales were publically announced but demand is strong and prices are high. One noteworthy transaction saw the sale of a partially-builtcondominium building. This could indicate that smaller developers are getting squeezed for bank finance. During the quarter a property fund sold its sole asset to a small listed company. This could mark the start of a trend as investors in such funds look to exit the market.The main opportunity is for joint ventures for Grade A o ffices in the CBD as en-bloc o ffice buildings are rarely available for sale.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESA new property tax based on the capital value of land holdings will be introduced in 2017. Asset-rich but cash-poor owners could be either forced to develop the land for rental income or sell it. The slowdown in residential sales has been more dramatic in midtown and suburban areas but the CBD market remains relatively strong.MAJOR TRANSACTIONSEight Thonglor Residences, Hotel – THB 2.55bn (USD 73mn), BUYER: CSM Capital PartnersSigna Resort Jomtien Pattaya, Hotel – THB 680mn (USD 19mn), BUYER: Apex DevelopmentAQ Aria Asoke , Residential – THB 586mn (USD 17mn), BUYER: Chewathai Public Company Ltd.TIER-1 CITIES Industrial Foreign investors may consider joint ventures for large shopping centres in the suburbs with good connections to the metro system.The sector is dominated by local groups and there are only very limited opportunities for foreign investors.Domestic InvestorsForeign InvestorsProperty CompaniesProperty FundsBangkokPattaya BangkokRetailSectorYieldPriceOfficeINVESTOR DEMANDIndonesiaActivity remained weak and most investors stayed in wait-and-see mode. Prospects for a recovery are limited in the short-termDomestic buyers continued to dominate activity but completed transactions and land deals were thin on the ground. Interest in the o ffice sector faded amid falling rents and the completion of a large volume of new supply. Some domestic investors are seeking to formpartnerships for built-to-suit projects with pre-committed tenants. Foreign investors, led by Japanese and South Korean groups, remain on alert for opportunities to purchase en-bloc assets as some local groups have turned more willing to sell. Local developers are stepping up the search for retail developmentopportunities in Jakarta following the li ft ing of the moratorium on new shopping mall development. Industrial corporations arerelocating manufacturing operations from areas around Jakarta to Central Java in search of lower costs.There are limited opportunities for foreigninvestors to engage in joint ventures for Grade A o ffice development or re-development in Jakarta.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESA new tax amnesty bill designed to return funds parked overseas will improve transparency and could benefit the property market.Relaxed laws governing the foreign ownership of residential property have been passed but have yet to impact the market. Their main effect has been symbolic and to build investor confidence.TIER-1 CITIES IndustrialThe main focus is on developing industrial buildings for lease, especially in cheaper areas outside Jakarta.Domestic InvestorsForeign InvestorsProperty CompaniesCorporationsProspects lie in developing shopping centres in suburban locations or smaller support sized facilities outside central Jakarta.MAJOR TRANSACTIONS IN H1Lippo Mall Kuta, Retail – IDR 800bn (USD 58mn), BUYER: Minor InternationalAnantara Ubud, Hotel – IDR 281bn (USD 21mn), BUYER: LMIR TrustKuta UbudPrime retail assets remain tightly held. Investors are advised to consider retail properties in suburban areas with good residential catchments.Retail SectorYieldPriceOfficeINVESTOR DEMANDSingaporeSeveral major transactions boosted investment volume but the market remained subdued. Investors were cautious and stock for sale was limitedDomestic buyers were quieter, with just one related-party o ffice deal completed. Most local groupsremained in wait-and-see mode as the price gap continued to deter activity. Some buyers instead opted to look abroad.Foreign investors turned more active this quarter with the completion of several major deals. Foreign buyers retain a positive long-term view of Singapore, with capital fromIndonesia, Malaysia and Switzerland also active this quarter.Institutions were active this quarter, led by the Qatar Investment Authority, which completed the acquisition of Asia Square Tower 1 for US$2.5 billion. Other sovereign wealth funds are eyeing the market. S-REITs were quiet. The coming months may see some S-REITs attempt to dispose of non-performing assets including a few shopping malls.Investors’ main focus in the o ffice sector is on acquiring en-bloc buildings generating steady rental income.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESInterest in hospitality assets remained very subdued as occupancy and RevPAR continued to decline.Luxury residential offers some opportunity at present but prices are high and it remains difficult to purchase en-bloc assets which remain subject to tax and stamp duty.MAJOR TRANSACTIONS Asia Square Tower 1O ffice – SGD 3.38bn (USD 2.51bn) BUYER: Qatar Investment Authority Straits Trading BuildingO ffice – USD 560mn (USD 416mn) BUYER: MYP Ltd. Centrium SquareRetail – SGD 135mn (USD 100mn) BUYER: Canali LogisticsCOMMERCIAL REAL ESTATE TURNOVERTIER-1 CITIES IndustrialBuyers are recommended to look at ramp-up logistics facilities. They may also consider self-storage and data centres.Domestic InvestorsForeign InvestorsREITs2 4 6 8 10 20122013201420152016 H1U S $ b i l l i o nDowntown Downtown Kallang Source: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercial InstitutionsOpportunities are limited at present but high quality malls in New Delhi and Mumbai could be an option in the medium term.Retail SectorYieldPriceOfficeINVESTOR DEMANDIndiaMarket sentiment further improved as the macro-economic picture remained positive. The wave of structural reforms continuedActivity among local investors continued to improve, with the residential market in Pune and Bangalore the primary focus at present.Foreign investors with an existing presence in India continued to expand their portfolios during the quarter. New groups were also evaluating market entry.Property funds from overseas were active during the period. Major transactions included Blackstone’s purchase of a transport-oriented development in Navi Mumbai.Elsewhere, Kohlberg Kravis Roberts and JP Morgan acquired stakes in greenfield residential projects. Local developers remained debt laden and continued to sell o ff land parcels to competitors and project stakes to private equity funds.However, some bought back stakes in projects this quarter.Well-leased IT o ffices and business parks in leading cities such as New Delhi, Bangalore, Mumbai, Pune and Hyderabad are the key focus.EMERGING TRENDS6-MONTH OUTLOOK & OPPORTUNITIESThe new real estate regulatory bill wasimplemented in May. The new legislation should bring more transparency to the industry.The government continues to relax restrictions government foreign direct investment. During the quarter authorities announced they would permit 100% FDI in single brand retail trading.MAJOR TRANSACTIONS Seawoods Grand CentralRetail – INR 14.5bn (USD 215mn) BUYER: BlackstoneRed Fort Capital Parsvnath TowersO ffice – INR 4.9bn (USD 73mn) BUYER: Parsvnath DevelopersLogix TechnoParkO ffice – INR 1.0bn (USD 15mn) BUYER: Logix GroupCOMMERCIAL REAL ESTATE TURNOVERTIER-1 CITIES IndustrialThe primary mode of investment continues to be purchasing industrial land for development. Alternatives are few and far between.Domestic InvestorsForeign InvestorsProperty Companies0.00.5 1.0 1.5 2.0 2.5 3.0 20122013201420152016 H1U S $ b i l l i o nMumbai New Delhi Noida Source: CBRE Research, Q2 2016. Transactions include deals above US$10 million in the Office, Retail, Mixed, Industrial, Hotel and Other commercial Property Funds。