"Many industry observers believe U.S. commercial real estate is an attractive long-term investment for SWF managers because it can create a hedge against currency depreciation with the potential for capital appreciation when the markets recover," said Guy Langford, Deloitte's U.S. head of Real Estate Mergers and Acquisitions. "There is clear evidence of increasing size and visibility of SWF investments in U.S. real estate, including a focus on five-star hotel properties and Class A office buildings in gateway cities -- a trend that may continue."
"Notwithstanding current U.S. and global macro economic conditions, which will likely impact SWF and other global investors' short-term investment strategies, SWFs may present a significant source of new capital flows into U.S. commercial real estate and the overall U.S. economy. Real estate firms that strive to understand and build relationships with SWFs may benefit from this access to capital and expanded opportunities for growth," said Dorothy Alpert, Deloitte's U.S. Real Estate leader.
Findings include:
-- SWFs are shifting strategy to pursue more active real estate investment
opportunities by forming joint ventures, assuming controlling and non
controlling stakes and committing development capital and hybrid debt
financing.
-- Some large SWFs allocate between 5 and 10 percent of their assets to
real estate investment.
-- The United States sits in the "middle of the pack" in imposing
regulatory restrictions on SWFs.
-- An overview of the Santiago Principles, which were established to
promote operational independence in investment decisions, transparency
and accountability and may result in the elimination of any remaining
barriers to increased SWF investment in U.S. real estate.
A copy of the report is available on Deloitte's website www.deloitte.com/us/realestate.
About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
Contact:
Elizabeth Fogerty Elizabeth Cheek
Public Relations Hill & Knowlton
Deloitte +1 212 885 0682
+1 212 436 7179 Elizabeth.cheek@hillandknowlton.com
efogerty@deloitte.com
SOURCE Deloitte LLP
http://www.deloitte.com/us/about

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