Insurers to invest $14b in overseas properties

Chinese insurers are poised to allocate nearly $14 billion to overseas property markets, with prime offices located in countries with high market transparency,such as the UK, US, Canada,Singapore and Australia, the main targets, a report said.

Led by excess liquidity, appreciation of the Chinese yuan and relatively low valuation of overseas property assets since the 2008 financial crisis, Chinese insurance institutions are becoming increasingly interested in overseas markets, said a report from commercial real estate firm CBRE.

Chinese insurers have gained sufficient experience in the domestic property market by investing in owner-occupied & rental, self-use, project equity, joint venture and direct purchase properties, among others, added the report.

After being granted permission for overseas investments in real estate, Chinese insurance capital will be invested into overseas real estate markets, Marc Giuffrida, executive director of international capital markets at CBRE, was quoted as saying by Reuters on Tuesday.

Prime offices and retail properties located in international gateways such asLondon,New York, Toronto, Singapore and Sydney will bring stable cash flows, which are extremely attractive for investors, added Giuffrida.