Development

Governments Around the World Continue to Shift Investment Focus to Real Estate

A Wall Street Journal article today continues to reinforce what we’ve been seeing in the Lower Mainland with real estate purchases by Government agencies lately including BCIMC’s acquisition of the Canada Post site downtown as well as Surrey City Development Corporation’s acquisition of two Surrey retail centres last year.  Recent real estate purchases by quasi-government entities are explored in the article which can be read HERE:

“At the start of 2010, the world’s largest sovereign wealth fund had no property investments to speak of.

Three years later, Norway’s Government Pension Fund Global, which manages the oil-rich nation’s wealth through Norges Bank Investment Management, has committed around $6.7 billion to property. The investments are mainly focused on prime office and retail space in major European capitals, and Norges Bank has said it plans to spend billions more over the next decade.

The fund manager has stated that it will invest up to 5% of its $690 billion fund in real estate by 2020, coinciding with a corresponding decrease in its bond holdings. It declined to comment for this article.”

March 13, 2013by david.taylor@colliers.com