Canadian Investment in U.S. Real Estate

NAIOP Webinar: Canadian Investment in US Real Estate

Please note that this webinar is being recorded.

CANADIAN INVESTMENT IN U.S. REAL ESTATE

Stephen Butler, Kirkland & Ellis LLP Jim Fetgatter FRICS, AFIRE Bruce Gelman, Kirkland & Ellis LLP Milton Lamb, Colliers International Brad Olsen, Atlantic Partners, Ltd.

WELCOME!

Thomas J. Bisacquino President and CEO NAIOP

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ABOUT THE TECHNOLOGY

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WELCOME!

Milton Lamb Senior Vice President Colliers International

Government Relations Committee Co-Chair NAIOP Greater Toronto

Jim Fetgatter FRICS AFIRE

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AFIRE INSTITUTIONAL MEMBERS

Australia Germany (continued) The Netherlands (continued) Macquarie Capital (USA) Inc.* Paramount Group, Inc.* StoneBridge Investments BV* Westfield Corporation, Inc.* Pramerica Real Estate Investors* Syntrus Achmea Real Estate* Real Estate Capital Partners* The IBUS Company* Canada RFR Holding LLC* Alberta Investment Management Corporation RREEF Investment GmbH* Norway Alberta Teachers’ Retirement Fund Board SEB Asset Management AG* Norges Bank Bentall Kennedy Stawski Partners* Brookfield Asset Management Union Investment Real Estate GmbH Singapore CIBC World Markets Corp.* Wealth Capital Management, Inc. GIC Real Estate, Inc.* CPP Investment Board Westdeutsche ImmobilienBank AG* Pacific Star Group Dorsay Development Corporation* Dundee Real Estate Asset Management Hong Kong, China Spain Healthcare of Ontario Pension Plan Hongkong Land* Euramex Management Group, LLC Ivanhoé Cambridge* Gaw Capital Manulife Financial Sweden Oxford Properties Group* Israel Alecta Real Estate Investment, LLC* PSP Investments Gazit-Group USA AP2 Second Swedish National Pension Fund Profimex Ltd. Skanska USA Commercial Development Inc. Denmark Japan Switzerland ATP Real Estate* Mitsubishi Corporation (Americas) AFIAA Investment AG Mitsui Fudosan America, Inc.* Amstar Group, LLC* France NLI International, Inc. Capital Guidance Corporation* AXA Real Estate Investment Managers Rockefeller Group Investment Management Credit Suisse * Sumitomo Mitsui Banking Corporation UBS* Germany Union Bank/MUFG Group Aareal Bank Group* Turkey Allianz of America, Inc. Korea Flagstone Property Group, LLC Bankhaus Ellwanger & Geiger* National Pension Service of Republic of Korea Bayerische Landesbank United Arab Emirates BVT Equity Holdings, Inc. Kuwait ADIA Commerz Real AG* Kuwait Finance House* DEKA Immobilien GmbH National Bank of Kuwait United Kingdom DekaBank Deutsche Girozentrale* Oqyana Real Estate Co. Aviva Investors GLL Real Estate Partners Wafra Investment Advisory Group* Hannover Leasing GmbH & Co., KG Capital & Counties Properties PLC* Grosvenor* IVG Institutional Funds GmbH The Netherlands Henderson Global Investors* JAMESTOWN US-Immobilien GmbH* APG Asset Management US Inc.* Hermes Real Estate Investment Manager Ltd Kan Am International* Blue Sky Group* HSBC Bank USA, NA KGAL Group Bouwfonds Investment Managers M&G Real Estate Limited (formerly Prudential) Landesbank Baden-Württemberg (LBBW)* Bouwinvest REIM* Standard Life Investments* Landesbank Hessen Thüringen (Helaba)* ING Real Estate Finance* Metzler North America* PGGM* Norddeutsche Landesbank* *Keystone Member (5+ years of membership)

FOREIGN DIRECT INVESTMENT POSITION IN US REAL ESTATE

43.6 42.8 49.8 47 45 33.2 44.2 34.9 29.9 28.5 31.9 40.2 35 27.5 38.9 19.4 30.3 25 17.8 28.7 29.1 29.7 11.5 15 9 22.5 14.6 $ BILLIONS 5 81 83 85 87 89 91 93 95 97 99 01 03

Data Source: BEA, US Dept. of Commerce 8

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FOREIGN ACQUISITIONS OF US REAL ESTATE

20 Billions

0 02 03 04 05 06 07 08 09 10 11 12 13 14 YTD

Source: Real Capital Analytics

SOURCES OF FOREIGN INVESTMENTS IN THE US FOR 2014

Other Australia Germany 10% 3% 5% MidEast 10%

Europe UK 18% 2%

Canada 24%

AsiaPac 28%

Source: Real Capital Analytics

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SOURCES OF FOREIGN INVESTMENTS IN THE US - 2010

Germany Europe UAE 3% 2% 2% .Bahrain .5% UK 14%

Canada 39% .Japan .5% Hong Kong 5%

Switzerland 5%

Israel 13% Australia Asia S Korea Netherlands 4% 4% 4% 4%

Source: Real Capital Analytics

SOURCES OF FOREIGN INVESTMENTS IN THE US - 2009

Americas Australia Mid East 1% 2% 3%

Europe 22% Germany 26%

Asia 6% Hong Kong Canada 2% Japan 10% 2% Israel UK 8% 18%

Source: Real Capital Analytics

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SOURCES OF FOREIGN INVESTMENTS IN THE US - 2007

Other 4% Europe 14%

Australia AsiaPac 32% 5%

Canada 17% Germany 4%

UK MidEast 6% 18%

Source: Real Capital Analytics

SOURCES OF FOREIGN INVESTMENTS IN THE US - 2004

Other UK 1% 13% MidEast 13%

Europe 7%

Austrailia 24%

Germany 29%

Pac Rim Canada 3% 10% Source: Real Capital Analytics

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RANKING OF USA CITIES FOR REAL ESTATE INVESTMENT

45%

40%

35%

30%

25%

20%

15% Perecnt of Total Score Perecnt of Total

10%

0% New York San Houston Washington Los Angeles Boston Seattle Miami Francisco DC 2009 2010 2011 2012 2013

The responses were scored with 3 points to each respondent’s first choice, 2 points to second choice, and 1 point to third choice.

“THE MOST DELIBERATIVE LEGISLATIVE BODY IN THE WORLD”

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AGRICULTURE ACT OF 2014 5 Years

INNOVATION ACT OF 2013, (Patent Reform) 7 Years

2005 BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2005 6 Years

TAX REFORM TAX REFORM ACT OF 1986 6 Years

113th Congress 2013-2014

2,912 Bills Introduced in the US Senate

185 were passed by the Senate

Approximately 80% of the passed were appropriations, naming of Post Offices, Nominations etc.

CURRENT FIRPTA REFORM EFFORTS

• On July 31, 2013 Reps. Kevin Brady(R-TX) and Joseph Crowley (D-TX) introduced H.R. 2870, the Real Estate Investment and Jobs Act of 2013. It demonstrates the continued bipartisan legislative commitment to reforming FIRPTA and attracting additional foreign capital into the U.S. real estate market

• H.R. 2870 is the companion bill to Senate Bill 1181, a introduced by Sens. Robert Menendez (D-NJ) and Mike Enzi (R-WY) on June 18, 2013, which is now cosponsored by a bipartisan group of 40 senators and is the most widely supported piece of bipartisan legislation currently before the U.S. Senate. H.R. 2870 has a growing list 60 co-sponsors, including 31 on the influential tax policy writing Committee on Ways & Means.

• The bill largely follows an earlier version which passed the House in 2010 by a vote of 402-11. The Obama Administration has also clearly acknowledged the importance of reform, with President Obama recently reaffirming his commitment to FIRPTA reform as part of the Rebuild America Partnership initiative

• We are hopeful that FIRPTA reform will move during upcoming “lame duck” session of Congress beginning in late November

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MAIN COMPONENTS OF CURRENT FIRPTA REFORM

• Reverse a misguided IRS Notice that drove investment out of US commercial real estate: – Before 2007, redemptions and liquidating distributions of a domestically controlled REIT were treated the same as sales of stock and not subject to US tax. In 2007, the IRS issued Notice 2007-55, which concluded that such distributions should be treated as sales of real estate and therefore subject to FIRPTA and possibly, branch profits, tax. This reversal by the IRS could not have come at a worse time. Combined with the economic crisis, it chilled inbound real estate investment and contributed to a sharp drop in commercial real estate property values. The bill would reinstate and codify the pre-2007 position of the IRS that such distributions should be treated as sales of stock.

• Increase the amount of stock minority shareholders can hold without triggering FIRPTA tax: – Currently, foreign shareholders can own up to 5 percent of publicly-traded companies without triggering FIRPTA. There are numerous investors around the world who own just below 5 percent of these companies’ stock, but despite their willingness to invest in US companies, won’t dare to go over for fear of being ensnared by FIRPTA. The proposal would increase from 5 percent to 10 percent the exemption level threshold and apply the new threshold to investors in certain widely held qualified collective investment vehicles.

FIRPTA REFORM MEDIA COVERAGE

1. Brady, Crowley Unveil Measure to Increase Foreign Real Estate Investment Under FIRPTA Bloomberg BNA 2. Congress Makes Another Run at FIRPTA Globe Street 3. Brady, Crowley spearhead tax reform act Houston Community Newspapers 4. Bipartisan Legislation Aims to Reform Tax Code for Foreign Property Investment Commercial Observer 5. Brady, Crowley Unveil Measure to Encourage Foreign Real Estate Investment Under FIRPTA The Daily Tax Report - Bloomberg BNA 6. Bill Lets Foreign Property Investors Buy More REIT Shares Bloomberg 7. Bill Watch Politico 8. Legislators Push to Trim Taxes on Foreign Investment Wall Street Journal 9. New FIRPTA Reform Would Attract Foreign Investment in US REITs Skadden, Arps, Slate, Meagher & Flom LLP 10. A Simple Solution for America's Looming Commercial Debt Crisis U.S. News and World Report 11. Brady, Crowley Unveil Measure to Increase Foreign Real Estate Investment Under FIRPTA Daily Tax Report, Daily Report for Executives, Mergers & Acquisitions Law Report, Real Estate Law & Industry Report and Alternative Investment Law Report 12. Bid to Drop Tax on Foreign Real Estate Investors Gains Bipartisan Support CQ Roll Call 13. Unlocking Foreign Investment to Fix U.S. Infrastructure-A Bridge to Bipartisanship Roll Call Op Ed 20

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CO-SPONSORS OF H.R.2870. REAL ESTATE INVESTMENT AND JOBS ACT OF 2013

REPUBLICAN DEMOCRAT Rep. Jenkins, Lynn [R-KS-2]* Rep. Crowley, Joseph [D-NY-14]* Rep. Roskam, Peter J. [R-IL-6]* Rep. Blumenauer, Earl [D-OR-3]* Rep. Johnson, Sam [R-TX-3]* Rep. Rangel, Charles B. [D-NY-13]* Rep. Sessions, Pete [R-TX-32]* Rep. Pascrell, Bill, Jr. [D-NJ-9]* Rep. Gerlach, Jim [R-PA-6]* Rep. Van Hollen, Chris [D-MD-8]* Rep. King, Peter T. [R-NY-2]* Rep. Larson, John B. [D-CT-1]* Rep. Schock, Aaron [R-IL-18] Rep. Kind, Ron [D-WI-3]* Rep. Garrett, Scott [R-NJ-5] Rep. Welch, Peter [D-VT-At Large] Rep. Nunes, Devin [R-CA-22] Rep. Neal, Richard E. [D-MA-1] Rep. Renacci, James B. [R-OH-16] Rep. Sanchez, Linda T. [D-CA-38] Rep. Griffin, Tim [R-AR-2] Rep. Maffei, Daniel B. [D-NY-24] Rep. Boustany, Charles W., Jr. [R-LA-3] Rep. Thompson, Mike [D-CA-5] Rep. Paulsen, Erik [R-MN-3] Rep. McDermott, Jim [D-WA-7] Rep. Reed, Tom [R-NY-23] Rep. Schwartz, Allyson Y. [D-PA-13] Rep. Marchant, Kenny [R-TX-24] Rep. Himes, James A. [D-CT-4] Rep. Reichert, David G. [R-WA-8] Rep. Bass, Karen [D-CA-37] Rep. Young, Todd C. [R-IN-9] Rep. Lewis, John [D-GA-5] Rep. Tiberi, Patrick J. [R-OH-12] Rep. Cardenas, Tony [D-CA-29] Rep. Grimm, Michael G. [R-NY-11] Rep. Davis, Danny K. [D-IL-7] Rep. Diaz-Balart, Mario [R-FL-25] Rep. Vargas, Juan [D-CA-51] Rep. Joyce, David P. [R-OH-14] Rep. Sanchez, Loretta [D-CA-46] Rep. Terry, Lee [R-NE-2] Rep. Honda, Michael M. [D-CA-17] Rep. Ros-Lehtinen, Ileana [R-FL-27] Rep. Esty, Elizabeth H. [D-CT-5] Rep. Turner, Michael R. [R-OH-10] Rep. Murphy, Patrick [D-FL-18] Rep. Kinzinger, Adam [R-IL-16] Rep. Israel, Steve [D-NY-3] Rep. Gibson, Christopher P. [R-NY-19] Rep. Lowey, Nita M. [D-NY-17] Rep. Meehan, Patrick [R-PA-7] Rep. Meeks, Gregory W. [D-NY-5] Rep. Black, Diane [R-TN-6] Rep. Foster, Bill [D-IL-11] Rep. Hunter, Duncan D. [R-CA-50] Rep. Castor, Kathy [D-FL-14] Rep. Jolly, David [R-FL-13] Rep. Delaney, John K. [D-MD-6] Rep. Buchanan, Vern [R-FL-16] Rep. Maloney, Sean Patrick [D-NY-18] Rep. Smith, Adrian [R-NE-3] Rep. Brownley, Julia [D-CA-26] Rep. Calvert, Ken [R-CA-42] Rep. Swalwell, Eric [D-CA-15] Rep. Kelly, Mike [R-PA-3] Rep. Shimkus, John [R-IL-15] 21

CO-SPONSORS OF S. 1181: REAL ESTATE INVESTMENT AND JOBS ACT OF 2013

REPUBLICAN DEMOCRAT Sen. Enzi, Michael B. [R-WY]* Sen. Schumer, Charles E. [D-NY]* Sen. Barrasso, John [R-WY]* Sen. Begich, Mark [D-AK]* Sen. Boozman, John [R-AR]* Sen. Bennet, Michael F. [D-CO]* Sen. Cornyn, John [R-TX]* Sen. Boxer, Barbara [D-CA]* Sen. Crapo, Mike [R-ID]* Sen. Cantwell, Maria [D-WA]* Sen. Isakson, Johnny [R-GA]* Sen. Cardin, Benjamin L. [D-MD]* Sen. Roberts, Pat [R-KS]* Sen. Carper, Thomas R. [D-DE]* Sen. Thune, John [R-SD]* Sen. Coons, Christopher A. [D-DE]* Sen. Wicker, Roger F. [R-MS] Sen. Gillibrand, Kirsten E. [D-NY]* Sen. Toomey, Pat [R-PA] Sen. Hagan, Kay [D-NC]* Sen. Burr, Richard [R-NC] Sen. Nelson, Bill [D-FL]* Sen. Graham, Lindsey [R-SC] Sen. Shaheen, Jeanne [D-NH]* Sen. Johanns, Mike [R-NE] Sen. Stabenow, Debbie [D-MI]* Sen. Risch, James E. [R-ID] Sen. Tester, Jon [D-MT]* Sen. Heller, Dean [R-NV] Sen. Wyden, Ron [D-OR]* Sen. Portman, Rob [R-OH] Sen. Klobuchar, Amy [D-MN] Sen. Murphy, Christopher S. [D-CT] Sen. Landrieu, Mary L. [D-LA] Sen. Merkley, Jeff [D-OR] Sen. Brown, Sherrod [D-OH] Sen. Pryor, Mark L. [D-AR] Sen. Warner, Mark R. [D-VA] Sen. Casey, Robert P., Jr. [D-PA] Sen. Schatz, Brian [D-HI]

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M.A.P.

• Meetings

• Advocacy

•Press

OUR COALITION

The Invest in America Coalition is the primary industry advocacy effort to reform FIRPTA and inject new, long-term capital into the U.S. commercial real estate market, boosting a vital sector of American business and reducing the potential risk of widespread commercial defaults.

Our Membership Includes:

Association of Foreign Investors in Real Estate Kimpton Hotels & Restaurants (AFIRE) Madison International Realty Beacon Capital Paramount Group Brookfield Real Estate Board of New York International Council of Shopping Centers Starwood Capital Group International Union of Painters and Allied Trades Profimex

Building Owners & Managers Association Westfield Group

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CANADIANS ON THE OFFENSIVE – TAX EFFICIENT INVESTMENTS INTO U.S. REAL ESTATE MARKETS

Bruce L. Gelman Stephen H. Butler KIRKLAND & ELLIS LLP

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KEY U.S. TAX ISSUES

US TAXATION OF CANADIAN INVESTORS

• Taxed on ECI as if a US Active business person income (a/k/a • Taxed on net income at “effectively graduated rates connected income” • Must file US tax return without proper structuring or ECI) • Not engaged in U.S. trade or business • Flat rate of w/h tax (30%), The United States subject to reduction by taxes non-US Passive income statute and treaty • Under U.S./Canadian persons (generally (which includes income tax treaty – interest individuals and dividends, interest, subject to 0% withholding corporations) in and royalties) and dividends subject to 0% - 15% withholding three basic ways • Generally no tax on capital gains • No US tax return required

Gains on the sale of • Treats gains on sales from US real estate as ECI US real property • Must file US tax return under FIRPTA without proper structuring

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CANADIAN INVESTORS – THE FIRPTA “HURDLE”

• FIRPTA – Foreign Investment in Real Property Tax Act • US income tax imposed on non-US investors on gain from sale of US real property interests (USRPIs) • USRPI – practically any interest in US real estate • If >50% of a US corporation’s assets are USRPIs, stock in that corp (a US real property holding corporation or USRPHC) likely also a USRPI • Straight real estate loans, ≤5% interest in public USRPHCs, and interests in domestically-controlled REITs are not USRPIs • 35% tax (20% for non-corporates under current law) • Withholding imposed on sellers of USRPIs • Any non-US person subject to FIRPTA also must file a US income tax return • Foreign pension funds organized as trusts may qualify for 20% non- corporate FIRPTA tax rate on capital gains

CANADIAN INVESTORS – DESIRE FOR CONTROL

• Commingled funds out of favor in the eyes of many Canadian investors • Lack of control • Fees and sharing of profits • JVs, “clubs,” and even 100% ownership, ascendant • Provides investors with control over asset and exit • One side effect of controlling stakes, however, is that there are fewer structures for minimizing US tax available to investors • The CFO of a prominent non-US pension fund has recently told us that avoiding FIRPTA is key to additional US investment, and domestically- controlled REIT structures are a logical choice to do that, but necessarily are <50% positions

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CANADIAN INVESTORS – SECTION 892 EXEMPTION

• Special US tax exemption for foreign governments: • Includes government agencies, instrumentalities and controlled entities that are not engaged in commercial activities (other than governmental functions) • E.g. postal service or libraries • Also includes pension trusts that are established exclusively for the benefit of current or former government employees • Exemption covers passive income from entities owned < 50% by foreign government: • Gains from sale of stocks or bonds (including USRPHC or REIT) • Interest • Dividends

SELECTED STRUCTURING TECHNIQUES

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CANADIAN INVESTORS - DIRECT INVESTMENT

Canadian Simple investors One level of tax (at investor Non-US level) US US tax returns FIRPTA withholding on exit 5% Branch profits tax (BPT) for Canadian corporations (but should not apply to a pension fund set up as a trust)

CANADIAN INVESTORS – INVESTMENT THROUGH A BLOCKER

Canadian No US tax returns for Canadian investors investor

Non-US No 5% branch profits tax Where internal leverage is used, US debt interest expense can lower blocker’s effective tax rate US withholding tax on interest reduced to 0% under US-Canada treaty In all cases, blocker may be a US partnership or LLC that makes an election to be Blocker 35% federal income tax on blocker’s treated as a corporation for US tax purposes income (plus potential states taxes) Withholding tax on dividends (0% - 15% under US-Canada treaty) FIRPTA may still apply on sales of shares in blocker or from distributions out of subsequent refinancings US “earnings stripping” rules can result in deferred deduction of interest on internal leverage

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CANADIAN INVESTORS - INVESTMENT THROUGH A REIT

Canadian Unlike blocker, REIT pays no entity- investors level tax (provided it distributes all Non-US of its taxable income)

US Although 0% - 30% US w/h tax on ordinary dividends paid by REIT, effective w/h tax can be much less (through impact of depreciation) 100+ investors Internal leverage can lower REIT’s taxable income, and interest

REIT subject to 0% w/h tax

35% w/h tax on CG dividends (can be lowered to 20% for trusts) 35% tax on gain from sale of REIT shares (can be lowered to 20% for trusts) US tax returns on CG dividends or sale of REIT shares

APPLICATION – DOMESTICALLY CONTROLLED REIT FUND - PARTICULARLY ATTRACTIVE FOR MANY PENSION FUNDS

Canadian No US tax on sale of REIT shares or investors Fund interests b/c REIT is Non-US domestically controlled US No US tax return for Canadian US investors investors Overall effective US tax rate on >50% income and gains can be less than Fund 10% (0% for SWF investors), depending on investment profile

REIT REIT 30% (not 15%) nominal w/h tax on REIT ordinary dividends (effective rate lower due to depreciation); 0% for sovereign investors This structure not available for Canadian investors taking

controlling position 36

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EXAMPLE

• JV purchases US asset for $100M • Canadian 892 investor provides 49% of capital, another sovereign provides 49% and manager provides 2% • Financed with $60M equity, $40M local bank debt (at 4%) • In blocker/REIT structures, $60M of equity structured as $40M equity and $20M internal leverage (at 8%) • Assumptions • 2.5% asset value growth (per annum) • Hold for 10 years • 7% property income yield (per annum) • 1% land tax per year (based on value) • 1% local property transfer tax • 0.5% acquisition costs • Asset value allocated 85% to the building, 5% to plant and equipment, and 10% to land (for depreciation purposes) • Investor eligible for the benefits of Section 892 of the Code • Two different investment structures – (i) direct investment, and (ii) <50%

controlled REIT. 38

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EXAMPLE (CONT’D)

Direct Ownership <50% Controlled REIT

Tax on $3,430,000 (49% of $7,000,000) of annual property yield Tax in US (direct or $341,072 $0 at blocker/REIT) US withholding tax $0 0.0% on repatriation Tax leakage on 15.82% $0 yield after land tax and bank interest Sale gain -- tax on $24,156,429 (49% of $49,298,834 of gain, based on $124,886,297 sale price) Tax in US (direct or $9,985,664 $0 at blocker/REIT) US withholding tax $0 $0 on repatriation Overall tax rate (on gain and 10 years of yield) 22.92% 0.0% • Increasing amount of shareholder debt or interest on shareholder debt can dramatically affect the effective tax rate

SPECIAL TAX TOPICS

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“HOT TOPIC” - CONVERT 35% FIRPTA TAX TO 20% TAX

Non-US trust Non-US • Non-corporate persons (such investor corporation as trusts) pay 20% (not 35%) on long-term capital gain from Non-US US the sale of real estate US tax US tax on $100 on $100 • Many Dutch pension plans long- long- term (and at least one Australian term gain - gain - $20 superannuation pension trust) $35 have obtained rulings from the IRS treating them as trusts, thereby qualifying for 20% tax rate under FIRPTA • Whether an arrangement will be treated as a trust is highly fact specific, which is why a ruling from the IRS is preferred

FIRPTA REFORM?

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OVERVIEW OF GLOBAL CAPITAL MARKETS

Brad Olsen Atlantic Partners, Ltd.

INTRODUCTION

Brad Olsen President, Atlantic Partners, Ltd. www.atlanticpartners.com

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INTRODUCTION

Brad Olsen President, Atlantic Partners, Ltd. www.atlanticpartners.com

• Active in international real estate for more than 30 years

INTRODUCTION

Brad Olsen President, Atlantic Partners, Ltd. www.atlanticpartners.com

• Active in international real estate for more than 30 years • Helps clients design and implement cross-border real estate strategies – in both directions across the Atlantic

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INTRODUCTION

Brad Olsen President, Atlantic Partners, Ltd. www.atlanticpartners.com

• Active in international real estate for more than 30 years • Helps clients design and implement cross-border real estate strategies – in both directions across the Atlantic • Advises investors & investment managers from Europe & North America, including USAA Real Estate Company

INTRODUCTION

Tsunami of capital?

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INTRODUCTION

No, a series of waves of capital…

INTRODUCTION

…of different amplitudes

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INTRODUCTION

Outline of Today’s Presentation

INTRODUCTION

Outline of Today’s Presentation

I. Global Capital Flows Into Real Estate

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INTRODUCTION

Outline of Today’s Presentation

I. Global Capital Flows Into Real Estate II. Foreign Investors in US Real Estate

INTRODUCTION

Outline of Today’s Presentation

I. Global Capital Flows Into Real Estate II. Foreign Investors in US Real Estate III. Three Countries to Watch

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GLOBAL CAPITAL FLOWS

“Transactional activity at the global level accelerated this quarter to leave investment markets on track to beat 2013’s performance by some margin.”

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GLOBAL CAPITAL FLOWS

DTZ Insight “The Great Wall of Money” 6 October 2014

“Total available capital for investment globally grew 15% over the last six months to USD408bn. This is the highest on record since we first published this report in 2009.”

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GLOBAL CAPITAL FLOWS

DTZ Insight “The Great Wall of Money” 6 October 2014

GLOBAL CAPITAL FLOWS

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