Summary
Deka an asset manager for German banks operates the country’s largest of open-ended property funds of around $28.24 B in property assets. In September, Deka bought a 12-story building in Washington, D.C., for $208 m at the top end of prime office space in the capital.
Other German buyers of U.S. property included the insurance company Allianz SE which purchased a 50% stake in Boston’s Once Beacon Square from Beacon Capital Partners in a deal that is valued the building at $508 million.
Analysis
Foreigners have spent around $2 billion on US properties this year, half of it is coming from German investors. The US Recession opened the doors for other european investors from the Netherlands, Switzerland and the UK as well. The weak US Dollar and the strong Euro make it a good opportunity for investors to buy long term. Some frustrated local investors grouse about the foreign investors, not seeing the big picture, that hey are helping the Real Estate Market and are jump starting our economy by infusion of cash.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
