LOS ANGELES—Chinese insurers are the newest players in the US market, according to Michael Van Konynenburg, president of Eastdil Secured. Van Konynenburg gave the economic update at Allen Matkins' recent View from the Top conference in Beverly Hills.
Van Konynenburg used a chart to rank the activity of Chinese insurers, showing China Life, Ping An Life, CPIC and Anabang Life as the biggest players, but there is a long list of smaller insurers starting to play in the market as well. “The scale is significant. They are going to be an enormous player in US market,” he said in his speech. Manhattan is currently the largest recipient of Chinese capital, while Los Angeles is number two.
The Chinese insurers are the latest investment pool to arrive in the US as part of the global search for yield because US is still a relative value compared to other countries, although Van Konynenburg noted that Germany is also attracting foreign capital. “There is a global search for yield,” he explained. “We are trying to understand the impact of negative rates. It puts strain on the bank, and seriously impacts global pension fund returns. You are seeing demand for people to find ways to put money to work to get a return. This is a world that is very challenged for returns.”
As a result, Asian investors are not only focused on commercial real estate investments but are also investing in corporate bonds. Van Konynenburg said that investors are trying to decide if it is the time to own real assets or financial assets in the global hunt for yield. While investors have different opinions, Japanese and Chinese buyers are buying corporate bonds in addition to real estate assets.
Allen Matkins View from the Top included speeches from Boston Properties about investing on the West Coast and the shrinking office buyer pool.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
LOS ANGELES—Chinese insurers are the newest players in the US market, according to Michael Van Konynenburg, president of Eastdil Secured. Van Konynenburg gave the economic update at
Van Konynenburg used a chart to rank the activity of Chinese insurers, showing China Life, Ping An Life, CPIC and Anabang Life as the biggest players, but there is a long list of smaller insurers starting to play in the market as well. “The scale is significant. They are going to be an enormous player in US market,” he said in his speech. Manhattan is currently the largest recipient of Chinese capital, while Los Angeles is number two.
The Chinese insurers are the latest investment pool to arrive in the US as part of the global search for yield because US is still a relative value compared to other countries, although Van Konynenburg noted that Germany is also attracting foreign capital. “There is a global search for yield,” he explained. “We are trying to understand the impact of negative rates. It puts strain on the bank, and seriously impacts global pension fund returns. You are seeing demand for people to find ways to put money to work to get a return. This is a world that is very challenged for returns.”
As a result, Asian investors are not only focused on commercial real estate investments but are also investing in corporate bonds. Van Konynenburg said that investors are trying to decide if it is the time to own real assets or financial assets in the global hunt for yield. While investors have different opinions, Japanese and Chinese buyers are buying corporate bonds in addition to real estate assets.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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Kelsi Maree Borland
