Real estate investment volumes may have slid from their 2015 global peaks last year, but real estate specialists Savills Investment Management cruised to a new record despite the down year.
The London-based firm announced record transaction volumes of $5.3 billion in 2016, including having achieved a new high of $868 million in Asia Pacific. The firm’s global total was up from $3.6 billion in 2015, versus a previous record of $ 3.6 billion set in 2015. Global property investment volumes declined to $650 billion in 2016 from a high of $707 billion in 2015, according to recent figures from real estate consultancy JLL.
The high water mark for Savills IM comes following its September 2015 acquisition of Germany’s SEB Asset Management, which strengthened the firm’s presence in continental Europe and in Asia.
Singapore Deals Lead Savills IM to Strong APAC Showing
A pair of Singapore transactions worth a combined $557 million helped Savills IM to its APAC record in 2016, accounting for 60 percent of its total deals in the region. Both transactions took place in December with the firm selling an office building at 77 Robinson Road in the city’s Central Business District for approximately $371.4 million and disposing of a 60 percent stake in the Chinatown Point shopping centre $185.9 million.
During that same month, Savills IM reached agreement on the sale of the Tama Center Building in Tokyo – one of six Japan transactions by the firm during the year.
Beyond Singapore and Japan, Savills IM also concluded one deal in Hong Kong during 2016, and another in Australia. According to a company statement, the company has a number of new acquisitions in progress in both Japan and Australia.
Elsewhere in the region, the firm recorded a total of six transactions in Japan, one in Hong Kong and one in Australia. A number of new acquisitions are also in the process of being completed in Japan and Australia, the company said in a statement.
The company, which says it currently has $1.3 billion available to invest in new assets in Europe and Asia Pacific in 2017, sounded a bullish note on opportunities for acquisitions in 2017 and beyond.
“This year and next could be an excellent period to build aPan-Asian real estate portfolio,” noted Kiran Patel, Chief Investment Officer at Savills IM. Patel cited the potential for higher economic growth in the region and the potential for a future market upturn in explaining his prognosis.
Savills IM Continues to Put Team in Place
Savills IM appears ready to take advantage of a potential upturn after spending to build up a team in the region since the SEB AM acquisition.
Earlier this month the firm brought former SEB AM executive Volker Wanka over from Germany to become its new Director of Fund Management in Singapore.
Wanka’s new role followed SIM’s promotion of Michael Flynn to APAC CEO in May of last year. Also in September of 2015 the company brought on board former Morgan Stanley executive Craig Pearce as Head of Asset Management for Asia.