Indonesia: Bali Looks To Rebound From Pandemic Travel Bans
International tourism to Bali essentially ceased in 2021 amid pandemic travel prohibitions, and hotel operators in the Indonesian island province are now looking to welcome visitors back with some significant property overhauls.
“During the pandemic, the devastating impacts of COVID-19 on tourism in Bali necessitated re-envisioning and rebuilding,” said Lucia Liu, general manager of The Laguna luxury resort, which underwent a renovation of its lobby and other spaces. Bali operators are seeking to spur a return to pre-pandemic visitor counts that averaged roughly 6.5 million annually, according to Fodor’s Travel.
France: Retail Property Investment Recovering
After several years of historically low deal volumes, France’s retail property investment is picking up again, with levels similar to those recorded in 2019 thanks to large portfolios changing hands.
The retail rental market is torn between expansion and changes in demand taking place for various retail categories. Luxury, food and discount stores are holding their own, while categories such as “fast fashion” apparel are losing ground.
Germany: Survey Finds Investors Leery About Transaction Risks
The German real estate market has become less attractive compared with a year ago amid a significant decline in transaction volume, according to an annual survey by consulting firm EY Real Estate.
Researchers reported that 66% of 250 investors polled said the market was attractive or very attractive, down from 96% a year ago. Risks have increased significantly, with gaps in price expectations between buyers and sellers blocking transactions, but Germany remains attractive relative to other regions, the consulting firm said.
Canada: One of Nation’s Largest REITs Sells Off Data Centers
Toronto-based Allied Properties is moving ahead with plans to sell off data centers valued at $1.3 billion, as one of Canada’s largest office-focused real estate investment trusts looks to pay down debt.
The company, with an office portfolio of nearly $12 billion, hired Scotiabank and CBRE Limited as exclusive selling agents. CEO Michael Emory said Allied Properties is seeking to “supercharge our balance sheet and reduce our dependence on the capital markets going forward.”
UK: Social Media Giant TikTok Leases Large London Office Space
Chinese social media giant TikTok Information Technologies preleased 140,000 square feet in an office development under construction in London’s “Cultural Mile” district, at a time when other technology firms have been reducing space worldwide.
The speculative office project known as Verdant is due for completion in the third quarter of 2024. Mark Kingston, managing director of project developer Topland, said the company’s confidence in the London office market “has now been borne out by signing such a quality client” as the fast-growing TikTok.
US: Student Housing Deal Gets Financing Amid Record Demand
Amid rising investor interest, PGIM Real Estate provided $108.5 million in financing to a fund managed by Morgan Stanley Real Estate Investing and Global Student Accommodation for the acquisition of a five-property student housing portfolio.
The fixed-rate loan is backed by properties totaling 548 units with 1,619 beds supporting universities in Austin, Texas; Flagstaff, Arizona; and Charleston, South Carolina. The financing restocks Morgan Stanley and GSA for further purchases in student housing, a category that saw record U.S. transaction volume of $18.9 billion in 2022, according to brokerage JLL.
This report was compiled from CoStar’s international news publications in the United States, United Kingdom, Canada, France and Germany.