Investors Drawn to Aussie REIT Market

International investors are increasingly being drawn to Australian real investment estate trusts (REITs) thanks to the quality of assets and stable economy in the country. But, analysts claim that despite the attractiveness of the trusts many buyers are facing problems due to the strength of the AUD....

International investors are increasingly being drawn to Australian real investment estate trusts (REITs) thanks to the quality of assets and stable economy in the country. But, analysts claim that despite the attractiveness of the trusts many buyers are facing problems due to the strength of the AUD.

Ron Sturzenegger, the global head of real estate for Merrill Lynch, said the stronger fundamentals of Australian property such as high office occupancies and capital values, made the impact of the dollar more bearable for overseas investors.

Speaking to BusinessDay, the expert explained that he expected an increase in activity in the Australian market over the next few months.

''Clients tell us they want global opportunities that match up with the local real estate companies. These include trusts with office and retail assets," Mr Sturzenegger added. 'The UK REIT market has been as hard hit as the US, so the Australian market, despite the strong Australian dollar and higher interest rates, still offers the best opportunities. Japan is also emerging on the radar."

- Thursday 11 November 2010

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