...Subject: Investment in real estate in New York City and factors Topic: Factors that influence investment in real estates in New York City Question: What are factors that provide the foreign investors to invest their money to real estate in New York City? Thesis: Diversification, big amount of money, exchange rate and quality of life are factors that influence foreigners to invest in real estate in New York City Abstract: With the economic crisis in the U.S., Americans are worried about investing in real estate while foreign investors feel the U.S. real estate market is very enthusiastic especially in New York City. According to an annual survey taken by the Association of Foreign Investors in Real Estate (AFIRE), the U.S. rose to the top of the real estate market world. AFIRE members hold more than $627 billion of global real estate, including $265 billion in the U.S. About 72 percent of the respondents planned to invest more money in the United States in 2011. Based on the foreign investors in real estate in the U.S., the research evaluated the factors that influence the foreign investment in U.S. real estate. Outline of the Paper 1. Introduction 2. Foreign Investors Taxation 3. When to Invest in Real Estate 4. Factors that Influence Investing in Real Estate in New York City * Big Amount of Money * Diversification * Exchange Rate * Quality of Life 5. Conclusion 6. List of References Introduction When the economy goes down...
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...Cadim: The China and India Real Estate Market Entry Decisions I. INTRODUCTION Cadim is a real estate division of Caisse de Depot et Placement du Quebec (Caisse), Canada’s largest pension fund management firm. Caisse is the largest institutional investor in Canada, overseeing more than $245 billion in assets and carrying out more than $12 billion in transactions daily. Cadim is one of Caisse’s three real estate divisions comprising around 6.23% of Caisses portfolio ($15.3 billion). Cadim focuses on residential and hotel markets, while the other two real estate arms focus primarily on shopping malls and business. Currently Richard Dansereau, Cadim’s Chief Operating Officer is in the process of deciding whether or not to move in to the India and China real estate markets. This case study will review the key issues, the general environment of India and China, Cadim SWOT, alternatives to moving into India and China and will conclude with our recommended course of action. II. KEY ISSUES Richard Dansereau, Cadim’s Chief Operating Officer has been tasked with making the final decision whether to enter real estate markets in India and China. Cadim has been forced to look toward external markets due to the average risk- adjusted return of real estate in their current markers, North America, averaging considerably below Cadim’s internal required return rate...
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...Stephanie Wicks-Franklin International Economics Research Paper Instructor Stephen L. Crain Wednesday, August 23, 2014 The US and China “A Marriage Made in Renminbi-Yuan” The United States presently in a tightly knit and powerful economic relationship with China. Reason being the US economy depends heavily on foreign capital, in particular the Renminbi-Yuan. According the US Treasury report as of September 21, 2014 the total debt for the United States was at a staggering $17,752,082,587,972.00, this is almost eighteen trillion dollars. With foreign governments and investors holding roughly half of it and China’s holds the largest portion thereof at $1.268 trillion, which is only slightly down from $1.279 trillion in 2013. Chinas investment in the US is a smart move on their part because doing so keeps the value of the dollar relatively high in comparison to the Renminbi-Yuan. Using this very simple it would make China’s exports to the US appear more affordable. This fundamentally helps, China’s the trade driven economy grow. According to the latest numbers provided they the United States Census Bureau as of July 2014 U.S. trade in goods with China are as follows the US exports approximately $9,288,200 and China imports $40,151,300 leaving a trade deficit of roughly $30,863,000 and the current total for the year being an incredible $186,079,900. In an article written for the Wall Street Journal, in September 2014 titled China's Trade Surplus Hits New High ...
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...India was lacking across major estate types. * Do not have financially strong infrastructure for building new properties and supporting new investments * Political risk in involved in Indian investments as it is difficult to come to any decision in the coalition government and sometimes it leads to much delay in the projects. * On Foreign exchange currency risk, Indian currency is more volatile and thus devaluation can lead to greater loses. * Indian Bond markets are not fully developed. * Investments in property and Infrastructure sectors are less risky than as compared to other sectors. * There are restrictions on investments in Kashmir, as it is military affected area. * Risk due to terrorism can decrease investor’s confidence. Similarly Maoists activities are and obstacles for investments certain regions of India. * There is legislation risk involved in India. As it has been the case with Vodafone deal where Indian government came with retrospective tax proposal to dole out tax from Vodafone deal. * Monetary policies keep on changing in India on regular basis. Key risks for Investments in China * Like India, estate types(across all major), China lacks on quality aspect of properties. * China is riskier on political aspect. Communist government policies fears a bigger threat for Investment in China and all the types of protests are simply tackled and forced to die down. * Employment practices in China are not favourable and they...
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...Contents Page Introduction 2 Reasons for Investing in Property 2 Property Versus Other Types of Investment 3 Problems with Property 3 Conclusion 4 Bibliography 4 Property is still one of the safest assets to invest in. To what extent do you agree with this statements? The economies of many countries, currently, are not yet stable. Some economies are returning from the recession, some are continuing to get worse. People are looking for a new business or a new job to earn an additional income. In this difficult economic situation, where everything is not always stable, people are looking to invest in something that will pay them compensations for at least a decade. Property, any physical or intangible entity that is owned by a person or jointly by a group of people, has been said to be one of the safest assets to invest in since property always plays a big role in driving an economy. This essay will state the reasons why property is no longer one of the safest assets to invest in. There are three parts that are going to be included in the essay: reasons for investing in property, property versus other types of investment, and problems with property. Reasons for Investing in Property Property is one of the investments that every investor should focus on because it is one of the safest assets to make an investment in. Firstly, property is...
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...Franchising Industry in China 1. An Overview of Franchise Development in China Franchising first emerged in China in the late 1980s. In 1987, KFC’s first Chinese outlet was opened in Beijing, the capital city of China. Franchising industry in China experienced a period of disordered development in the early days. In the poor legal environment, some franchisers conducted substandard business or even defrauded franchisees of money. In some cases, franchisees delayed payments to the franchisers or infringed on their intellectual property rights. In 1997, the Ministry of Internal Trade established the first Chinese franchise law, the Regulation on Commercial Franchise Business, which included guidelines on such issues as trademarks, copyrights, and intellectual property protection. A lack of specific provisions in the 1997 version governing foreign direct franchising allowed relatively few major international companies to have significant franchise businesses in China. Although many of these international brands such as 7-Eleven, McDonald’s, KFC and Pierre Cardin, normally do business through franchising, in China foreign franchising was still a grey area before the new rule was published. Because franchising typically does not involve investing in equities, the Chinese Government used to put less focus on such business. But the government came to find that franchises are a good business model for China to help solve its job problems and its scattered private capital. China’s capital...
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...PERE’s ranking of the 30 largest private equity real estate firms in the world Methodology e PERE 30 measures equity raised between 1 January 2006 and mid-April 2011 for direct real estate investment through closed-ended, commingled real estate funds and co-investment vehicles that sit alongside those funds. e vehicles must give the GP discretion over the capital, meaning club funds, separate accounts and joint ventures are excluded from the ranking. Also excluded are funds with strategies other than value-added and opportunistic, such as core and core-plus, as well as those not focused on direct real estate, like fund of funds and debt funds, and funds where the primary strategy is not real estatefocused, such as general private equity. Change is in the air Consolidation, business exits and strategic shifts among general partners begin to manifest themselves in the 2011 ranking While the full e ect may not be completely evident yet, the main theme reverberating through this year’s PERE 30 ranking is change. Many of the rms that comprise the list are going through a transformation, whether it is acquiring competitors to achieve greater scale or gain access to a region, scaling back operations or exiting the business completely in the wake of the recent downturn and expected reforms or just adjusting strategy to take a new approach to investing and fundraising. Some of these changes already have a ected the standings, while others will take another year or two to have...
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...since then The PERE 50 ranking of private equity real estate firms, following the twisted iron wreckage of the global financial crisis of 2008, now has some shape and stability to it. Unlike last year when there were no fewer than 14 new entrants to the ranking, this time around we see just two firms making their premiere - Greystar Real Estate Partners and Almanac Realty Investors. This can be explained by the fact that the major banking franchises that used to rank so highly in this list have exited and been replaced by groups that have had the time to raise at least two significant funds since 2010 as the shakedown by investors has left the healthy apples on the trees, while the sickly have fallen. Of course, there has been no change at the very top of the chart. The Blackstone Group is out of sight having now raised more equity for opportunistic real estate investing than the GDP of 77 different countries. The only slight drama towards the top of the tree relates to second and third spot where Starwood Capital Group this year leapfrogged Lone Star Funds, having figured behind the Dallas-based firm the previous year. Starwood’s second position on the grid has a lot to do with raising its largest ever fund - Fund X. A counterintuitive finding, however, comes in the absolute dearth of true European private equity shops in the PERE 50. How can this be when Europe has been the hottest market for investing? This year, there is no Orion Capital Managers, no...
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...USQ-SCNU International Accounting College Assignment Chinese Economics in Global Financial Crisis of 2008 Prepared for F.S. Helmut Submitted January 10th, 2014 Ludacris Yu As for the financial crisis of 2008 in the world, which is the most serious economics crisis since the Great depression in 1930s, and caused globalized influenced. Many major economics have had flat and passive development over the last two years. Whereas in China, the economics still have been growing stabilized. According to the Wikipedia “China is the world’s second largest economy by nominal GDP and by purchasing power charity after the United States of America. And it is the world’s fastest-growing major economy with growth rates averaging 10% over the past several years.[1]” The financial crisis also mean a financial storm. The meaning of storm that are the financial indexes such as short-term interest rates, monetary assets, securities, real estate, land prices, the number of business bankruptcy and the collapse of several financial institutions suddenly or short-period deteriorated in the largest number of countries and regions. The financial crisis can be divided into a currency crisis, debt crisis, banking crisis or others. The economic crisis in the year of 2008 was originated in the U.S. Sub-prime mortgage crisis, the development of the U.S. Sub-prime mortgage crisis, which evolved into a global financial crisis. In my opinion, the crisis in 2008 which...
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...Restaurants Index was up 4.4% versus an 8.7% increase for the S&P 1500 Index. In 2011, the sub-industry index outperformed the 1500, with a gain of 27.9% versus a 0.3% decline.” Financial Position of McDonald’s Corporation (MCD) McDonald’s Corporation (MCD) is the leader in global foodservice retail with more than 33,000 restaurants worldwide and 1.7 million employees in 119 countries (“McDonald’s Corporation”, 2012). Approximately 68 million people eat at McDonald’s each day (“McDonald’s Corporation”, 2012). With international growth and globalization on the rise for many quick service restaurants, such as Starbucks and Yum!, McDonald’s Corporation has also taken advantage of worldwide global growth. McDonald’s has grown their market in China, India, and other foreign countries (Murphy, 2011). According to Standard and Poor’s (2012), McDonald’s Corporation revenues have increased from $22.7 million in 2009 to $27 million in 2011. Additionally, McDonald’s operating income has increased since 2006 and their cash flow and current assets have increased steadily since 2009 (Standard and Poor’s, 2012)....
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...Recently, Vietnam is attracting increasing interest from international investors as a promising emerging market. Some of the largest U.S. corporations such as Intel, IBM, Wells Fargo, Citigroup, to name a few, started to set foot in the country with confidence. However, investing in Vietnam still constitutes a conundrum for outsiders and horror stories have been told by former entrepreneurs who lost their fortunes and even almost lost their lives dealing with the Vietnamese Communist Party. Case in point: Trinh Vinh Binh, a Vietnamese Dutch investor who escaped from Vietnam and later sued the Vietnamese government for breach of contract and for confiscating his assets in Vietnam. The case was eventually settled for an undisclosed amount of award in 2007. The initial claim was $150 million (UNCTAD, 2007). The crucial question remains: “under the current market conditions, is it worth to invest in Vietnam?” S.W.O.T analysis Strengths. 1. A fairly large customer base of more than 86 million and growing at a rate of 1% annually. 60% of the population are young, born after 1975 and aspire to become a consumer society with higher standards of life. Wages in Vietnam are among the least expensive in all Asia. Vietnam has a high rate of literacy. 90.3% of the population aged 15 years and older are literate (CIA World Factbook, 2009). 2. Significant reserves of energy and mineral resources such as oil (Vietnam is ranked 33 worldwide among oil producing countries), bauxite...
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...describe two of the factors influence the demand for housing in Hong Kong, including lowinterest rate and intensive population, as well as analyze the benefits and disadvantages impact of the housing boom. "A runup in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future"(Investopedia, 2014). The meaning of the housing boom is that housing prices continue to increase, because of the consumer would like to make a profits through sale of real estate. Hong Kong has a very lowinterest rate compared to other neighboring countries such as China, India and Korea. According to the Trading Economics(2014), the benchmark interest rate in Hong Kong was last recorded at 0.50 percent compared with other countries 6 percent, 8 percent and 2.25 percent respectively. It demonstrated that Hong Kong provided a lowinterest rate platform to attract people who are interested in investing in the stock market and Real estate. Moreover, the more willing people are to borrowing, as well as spending money to make big purchases such as houses or cars, when consumers pay less interest, They can have a choice to spend more money...
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...Securitising China real estate: a tale of two China-centric REITs Michael C.H. Quek and Seow Eng Ong Department of Real Estate, National University of Singapore, Singapore Abstract Purpose – There is currently no real estate investment trust (REIT) listed in China. As of date, only two REITs – GZI REIT of Hong Kong and CapitaRetail China Trust (CRCT) of Singapore – have securitised Chinese property assets. The purpose of this paper is to examine the driving forces and the obstacles surrounding China REITs, and evaluate REIT securitisation as an exit strategy for Chinese properties. Design/methodology/approach – The paper analyses the performance of the two cross-border REITs and investigates whether REITs holding Chinese assets outperform other listed REITs. Research limitations/implications – CRCT outperforms GZI REIT as well as some of the other Singapore REITs, while GZI REIT ranked second lowest in terms of price performance when compared to other Hong Kong REITs. The limited history of CRCT suggests that when a well-structured REIT holding Chinese assets can perform very well. We also infer that performance is closely linked to portfolio composition and diversification, growth story and originator reputation. Originality/value – The study shows that there is indeed a strong local demand for China REITs, and that REITs can provide an alternative source of real estate financing for Chinese developers and promote a better regulated Chinese real estate market. Keywords Real estate...
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...Brazil: An Investor’s Paradise A Proposal on Why Investors Should Be Considering Brazil Introduction Currently, there are four countries that are growing at rates much faster than the average, and will soon be poised to be major players in the world’s economy. Those countries are referred to as BRIC, which stands for Brazil, Russia, India, and China. There is much debate as to which will emerge on top as the dominant world force; however investors are starting to make their predictions clear. Every day, investors are pumping money into the Brazilian economy for a myriad of reasons. But before one can understand those reasons, it is essential to understand Brazil’s background. Part I: Country Background Brazil was originally colonized by Portugal during the early 1500’s. This is evident today, as the official language of Brazil is Portuguese. It is estimated to be approximately 8,514,877 square kilometers, and have a population of 199,321,413, making it the largest country in South America, and the fifth largest in the world in terms of both area and population. (https://international.ipums.org/international/enum_materials.shtml) The political system used is a Federal Republic, and the Head of State is Dilma Rousseff. (https://www.cia.gov/library/publications/the-world-factbook/geos/br.html) While there are several political parties in Brazil, none of them are technically in power. The strongest of the group though is the Worker’s Party. The current type of law practiced...
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...New York Frankfurt Mumbai Beijing Shanghai Tokyo Hong Kong Warburg Pincus is a global private equity firm that has invested in more than 600 companies and successfully partnered with thousands of entrepreneurs around the world. Financial Services Healthcare LBOs and Special Situations Investment Sectors Industrial Technology, Media and Telecommunications Energy Consumer and Retail Real Estate Warburg Pincus is a global leader in the industry it helped create: Private equity. With more than 40 years of experience, our track record of continuous and successful investing is unmatched by any other private equity firm. Striving to create sustainable value in partnership with superior management teams, we work with companies to formulate strategy, conceptualize and implement creative financing structures, recruit talented executives and draw on best practices from the firm’s portfolio companies. We take a different approach to investing, beginning with a thorough evaluation of macroeconomic and industry fundamentals. Private equity at Warburg Pincus means investing at all stages of a company’s life-cycle: From founding start-ups and fostering growth in developing companies to leading complex recapitalizations or large-scale buyouts of more mature businesses. This growth-oriented philosophy is incorporated across 3 2 2 Our Philosophy each of our investment sectors. At the heart of our approach is an emphasis on building businesses that...
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