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Saudi Arabia has lofty aspirations to attract millions of tourists a year, and China could become a significant source of those tourists as international travel rebounds from the pandemic.
Jasmine Geffner, chief financial officer of Dorsett Hospitality International, said Saudi Arabia’s Vision2030 target of 100 million tourists a year could be met from 10 percent of the Chinese population holding passports. At a reception in Riyadh, participants said that before the pandemic, China had the world’s largest outbound tourist contingent, and that could soon be the case again.
Swedish furniture giant IKEA is in talks to buy the Churchill Square Shopping Center in Brighton, England, from Abrdn’s Aberdeen Standard Property Unit Trust for a reported price of around £175m.
Brokerage firm Knight Frank listed the 520,000 sq ft shopping center earlier this year, which was developed by Standard Life Investments in October 1998 for £90m in central Brighton. There were multiple bids for the asset at around £175m, an encouraging sign for the market after several other major shopping centers have struggled to sell of late.
Investment giant Blackstone has closed its latest global real estate fund, one of the largest ever, with an expected total capital commitment of $30.4 billion.
Katherine McCarthy, global co-head of Blackstone Real Estate, said the New York-based firm continued to invest in France and elsewhere despite the tight economy. “So, while the market has seen a sharp pullback in capital, banks and other lenders have become more conservative in their lending, and equity investors have become more cautious, for a company like Blackstone, this dislocation creates opportunity,” McCarthy said in Business Immo. Exclusive interview.
Refinancing German commercial real estate purchases during the peak price period of 2018 to 2021 will require significantly higher equity capital due to changing market conditions and lower real estate valuations, analysts said.
According to calculations by brokerage Colliers, the debt gap is 28 billion euros from 2023 to 2030, accounting for 14% of invested capital from 2018 to 2021, which will be open for refinancing. The shortfall figure was 17% in the office category and a whopping 29% for high street retail investment. It could also slow the deal market, as the equity has to be used for refinancing rather than buying.
One of Canada’s five largest banks expects rising interest rates, tighter lending conditions and a mild recession to depress rental income and lower property values in commercial real estate.
Even the once-hot industrial and multifamily housing markets have been hurt by falling valuations, according to a report from BMO senior economist Sal Guatieri. The economist said the apartment sector will benefit from Canada’s strong population growth, although headwinds could translate into “fewer loans and higher defaults, mainly in the struggling office market.”
Despite the economic turmoil, investors, retailers and mall owners said they were optimistic but cautious about the industry’s outlook.
Inventory is tight as developers retreat and new retail space is scarce due to overbuilding in previous years. That has helped drive up rents, even as more retailers have filed for bankruptcy or planned to liquidate stores over the past few months, according to some brokers and landlords.
This report is compiled from CoStar’s news publications in the US, UK, Canada, France and Germany.
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