TEANECK, NJ-Investing in real estate overseas isn't the most secure move, but investors are hoping the benefits outweigh the risks. A panel at the New Jersey chapter meeting of NAIOP discussed "Global Real Estate Investment – Inbound and Outbound" at the Glenpointe Marriott. Foreign investors tend to be more adventurous then local investors, regardless of the country in question, said moderator Alex Klatskin, a partner at Forsgate Industrial Partners and vice chair of government affairs for NAIOP on a national level. "Out of town money looks forward, local money looks backward."
Out-of-town money is thus usually the highest bidder, said Chris Sameth, a partner at Investcorp's New York office. American investor money goes overseas in part because of the intensely competitive nature of local real estate markets. Investments with greater potential yields can be found easier in emerging markets.
The risk of unstable governments is something to seriously consider, Klatskin said. Any regime change could bring about what he called a "Thanks for your building, but it's ours now" seizure by a local government.
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