• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Business

Coronavirus, Brexit deter sovereign investors from property – Data

5 January 2021, 4:22 AM  |
Reuters Reuters |  @SABCNews
Social distancing measures imposed by governments in various parts of the world in response to the pandemic have left prime office blocks empty, hotels half-vacant and retailers struggling to stay afloat.

Social distancing measures imposed by governments in various parts of the world in response to the pandemic have left prime office blocks empty, hotels half-vacant and retailers struggling to stay afloat.

Image: Reuters

Social distancing measures imposed by governments in various parts of the world in response to the pandemic have left prime office blocks empty, hotels half-vacant and retailers struggling to stay afloat.

State-owned investment funds invested the least in real estate in eight years in 2020, shying away from offices and hotels in particular, as the coronavirus crisis and Brexit sapped appetite.

In contrast, infrastructure, the other main real asset, pulled in $53.2 billion of investments from sovereign wealth and public pension funds during the year, only slightly down from the year before, the data from Global SWF, a financial boutique, showed.

Of the total $30.7 billion property investment in 2020, more than a third was funnelled into logistics, such as warehousing, the data showed.

“SOIs (sovereign-owned investors) see that the long-term infrastructural needs are going to be approximately the same but are pivoting towards logistics and away from offices in anticipation of a potential permanent change in working culture,” Global SWF said in its annual report.

Social distancing measures imposed by governments in various parts of the world in response to the pandemic have left prime office blocks empty, hotels half-vacant and retailers struggling to stay afloat.

It has also triggered sovereign funds to reassess a segment that has long been a mainstay of their strategies.

Offices accounted for $5.3 billion of their investment in 2020, nearly half the level of 2019, while hotels attracted $1.5 billion, down from $4 billion the year before, the data showed.

Offices had been losing their attraction for sovereign funds since Brexit prompted them to stop spending on prime London real estate, the report said, noting that investment in hotels in 2020 was half of 2015’s total.

“Real estate and infrastructure are still an important part of the portfolio of SOIs and will continue to be so,” the report said. “However, we have seen a decrease in the number of deals related to real assets, from almost half in 2015, to a little more than a third in 2020.”

Within infrastructure, transport accounted for the largest segment of investment by state-owned investors in 2020, 39% of all investments, despite temporary restrictions on travel imposed during the year.

Share article
Previous Post

Israel’s health ministry authorises use of Moderna’s COVID-19 vaccine

Next Post

Assange ‘free to return home’ once legal challenges over – Australia PM

Related Posts

File image: Tourists on a game drive.

Limpopo Tourism Agency launches it’s winter campaign

28 May 2023, 12:20 PM
[File Image] Electricity pylons are seen in front of the cooling towers at the Lethabo Thermal Power Station, an Eskom coal-burning power station near Sasolburg in the northern Free State province.

Ministers have no option but to co-operate in addressing electricity crisis: Ramaphosa

28 May 2023, 7:29 AM
Electricity Minister Kgosientsho Ramokgopa gestures during an engagament with stakeholders at the Tutuka Power Station in Mpumalanga on 22 March 2023.

Electricity Minister should be judged on actions, not words: Expert

27 May 2023, 7:04 AM
For sale sign hangs in front of a house

10th interest rate hike since Nov 2021 putting the squeeze on housing market

26 May 2023, 3:41 PM
A taxi driver counts money during a trip in Johannesburg

Another interest rate hike will result in a recession: Savings Institute

26 May 2023, 2:12 PM

Reserve Bank’s decision to increase rates is aggressive: Economist

26 May 2023, 9:02 AM
Next Post
WikiLeaks came to prominence when it published a US military video in 2010 showing a 2007 attack by Apache helicopters in Baghdad that killed a dozen people, including two Reuters news staff.

Assange 'free to return home' once legal challenges over - Australia PM

Most Viewed

  • 24hrs
  • Week
  • Month
  • DENOSA defends nurses for placing newborns in boxes
  • North West Health probes why newborn babies were placed in boxes
  • eThekwini residents face higher stages of load shedding from Thursday
  • Namibia declares outbreak of Crimean-Congo fever after patient dies
  • Pending court cases interfering with my duties: AmaZulu King
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Experts raise caution over Prime energy drink craze
  • NW residents plunged into darkness after burning of power station
  • 108-carat ‘fancy intense pink’ diamond discovered in Lesotho
  • Dr Nandipha Magudumana, co-accused in Thabo Bester’s escape to apply for bail
  • DENOSA defends nurses for placing newborns in boxes
  • EFF Limpopo councillor gunned down at his home
  • Pirates win Nedbank Cup final
  • Cholera outbreak death toll rises to 24
  • New DA leader in Limpopo to prioritise reuniting members

LATEST

Water tanker provides water to Hammanskraal
  • Cholera outbreak
  • South Africa

Hammanskraal residents call on President to visit


A man is pictured refilling bottles from a water tanker.
  • Cholera outbreak
  • South Africa

Ventersburg residents call for clean drinking water amid cholera outbreak


File image: Tourists on a game drive.
  • Business

Limpopo Tourism Agency launches it’s winter campaign


(File Image) Al Shabaab militants seen
  • Africa

Uganda confirms casualties among country’s soldiers in Somali attack


ANC media briefing
  • Politics

LIVE: ANC media briefing on NWC’s visit to North West


A water tanker distributing water to Hammanskraal residents.
  • Cholera outbreak
  • South Africa

CORRECTION: Ramaphosa plans to visit cholera-hit Hammanskraal


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Israel’s health ministry authorises use of Moderna’s COVID-19 vaccine
Next Assange ‘free to return home’ once legal challenges over – Australia PM