Calum Weaver on Last Week's Poll

SOVEREIGN WEALTH FUNDS

Last week’s national GlobeSt.com Quick Poll asked readers what they thought about sovereign-wealth funds. A majority of respondents, 56%, said the funds are a growing presence and are here to stay. 26% responded that the foreign money is a passing fancy, and 18% said the funds are a national-security threat. Calum Weaver is an associate of the multifamily private client group of CB Richard Ellis in South Florida. The group recently released a report focusing on foreign buyer interest in commercial real estate, especially multi-family properties. Weaver gives his take on sovereign wealth funds below;

“I think in general they are increasingly looking over here. That being said, despite a favorable exchange rate, that is not going to get the deals done. Deals have to pencil out in dollar terms. Anyone that thinks they’re going to come in and buy all kinds of properties based on a favorable exchange rate is mistaken. These are very sophisticated groups that are going to underwrite a deal no different from someone that has U.S. dollars and is not taking advantage of a favorable exchange rate. However, I do think they are increasingly coming and are here to stay.