German commercial real estate benefits – ‚Brexit feeds into more European commercial real estate numbers‘

BERLIN RIVER Building Photos 008

German commercial real estate benefits – ‚Brexit feeds into more European commercial real estate numbers‘

The ‘FTSE Global Trading’ of London today wrote about how BREXIT is causing withdrawals from UK property funds and reinvestment in German commercial real estate.

The article says that circa € 1.6bn has already been pulled from UK property and quoting a recent study which indicates a trend to re-invest in German commercial real estate.

Quoting a study from ‘BrickVest’, approximately 40% of the top-10 European cities in which investors were interested were German, even though London still just beat out Berlin for first place. Not only UK investors are getting in on the German real estate bonanza.

China sovereign wealth fund CIC invests in German homes

China’s shopping spree in Germany, with Midea’s €4.5 billion purchase of industrial robot maker Kuka some months ago, includes interest in both residential and commercial real estate.

Reuters reported last week that China’s sovereign wealth fund CIC has made a large investment in German residential real estate, adding to a string of recent buys of Chinese groups in Europe’s largest economy.

CIC and some co-investors have reportedly beat out German property groups Vonovia and Deutsche Wohnen in the auction for BGP.

This BGP buy, if confirmed would be the first major Chinese investment in German residential properties. We wrote on this blog about Chinese real estate investment in Berlin earlier this year.