November 28, 2018
Canadian acquisitions in the U.S. reached a record level due to a cluster of large entity-level deals, the latest Real Capital Analytics (RCA) US Cross-Border Investment Compendium shows. Canadian investors were behind 41% of all cross-border volume in the U.S. through the third quarter of 2018, more than the next four biggest country sources combined.
RCA commercial real estate economist Jim Costello notes French investors were the second largest investor group in the year through 3Q, due in large part to the Unibail-Roadmco purchase of Westfield earlier in 2018. Singaporean investment in the U.S. slipped by 16%, and this group of investors fell to the number three spot.
Acquisition activity from Chinese investors fell by more than 50%, though this group retained its position as the fourth largest investor group. Germany was the fifth largest source of cross-border investment, reports RCA.
Without Canadian investors such as Brookfield AM, the CPP Investment Board, OMERS and CDPQ, the momentum for cross-border activity in the U.S. would have stalled into the third quarter, writes Costello. Deal volume from investors other than Canadians slipped to $45.6 billion, versus a $46.3 billion level in the 12 months to the second quarter. This slowdown came despite a number of entity-level transactions involving cross-border investors from outside the Americas.
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