Middle East property investments outside region rise in H1: CBRE

Updated 10 September 2015
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Middle East property investments outside region rise in H1: CBRE

DUBAI: The value of Middle East investments in real estate outside the region surged 64 percent to $11.5 billion in the first half of 2015, although two deals by sovereign funds accounted for nearly half this year’s total, consultants CBRE say.
The splurge came despite a 44 percent drop in USlight crude oil prices in the 12 months to June 30.
The CBRE said sovereign wealth funds accounted for $8.3 billion of the spending in the first six months of this year — almost quadruple their outlay of $2.27 billion in the prior-year period.
“The size of the region’s foreign investment makes the Middle East the third-largest source of cross regional capital globally as Arab investors look for brighter investment prospects internationally,” Nick Maclean, CBRE Middle East managing director, said in the statement.
This year’s spending includes Qatar’s $2.5 billion investment in Maybourne Hotels and Abu Dhabi Investment Authority’s (ADIA) $2.4 billion purchase of a 50 percent stake in three Hong Kong hotels.
These deals helped make London, with $2.75 billion, and Hong Kong, with $2.4 billion, the top destinations for Middle Eastern property investors. New York was third with $1.1 billion and Milan’s $990 million placed it fourth.
In terms of sectors, hotel investments rose 437 percent to $6.75 billion — or 59 percent of total Middle East spending — while office acquisitions fell by nearly half to $1.99 billion and retail purchases dropped 40 percent to $708 million.
Other buys, which include residential property, jumped 144 percent to $1.66 billion.
“Hotels (are) growing in importance as sovereign wealth funds and high-net-worth individuals focus on real assets that generate long-term revenue,” said Iryna Pylypchuk of CBRE Global Research.
Property purchases by non-sovereign wealth funds fell to $3.2 billion in the first half of 2015, from $4.7 billion a year earlier, according to Reuters calculations based on CBRE data.


Amazon strengthens ties with French food retailer Casino

Updated 23 April 2019
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Amazon strengthens ties with French food retailer Casino

  • The move could re-ignite speculation of a bigger deal later on
  • The extended partnership comes as Casino is selling assets and cutting debt to try to allay investor concerns

PARIS: E-commerce giant Amazon and French retailer Casino are expanding their partnership, with Amazon installing pick-up lockers in Casino stores and more of the French company’s products to be available on Amazon.
The move, which follows an initial co-operation between Casino’s upmarket Monoprix supermarket chain and Amazon in Paris, could re-ignite speculation of a bigger deal later on.
An Amazon spokeswoman said it had a policy of not commenting on market speculation. Amazon’s purchase of bricks-and-mortar US food retailer Whole Foods Market last year has raised speculation it could seek to buy a European food retailer.
The extended partnership comes as Casino is selling assets and cutting debt to try to allay investor concerns over its finances and those of parent company Rallye.
The deal, unveiled on Tuesday, will see Amazon lockers installed in 1,000 locations across France in nine of Casino’s brands, including Monoprix, Monop, Geant, Hyper Casino, Casino Supermarche, Leaderprice, Viva and Spar by the end of the year. The lockers store Amazon products to be picked up by customers.
More Casino-branded products will also be available on Amazon, while Amazon and Monoprix will extend their partnership on Amazon’s Prime Now grocery delivery service outside Paris and into new cities in the next twelve months.
“This announcement represents a new step in strengthening Casino’s omnichannel strategy to always be a little more in the heart of consumers’ lives,” said Casino’s chief executive Jean-Charles Naouri in a statement.
Monoprix, seen by analysts as similar to Whole Foods, started filling orders for subscribers to Amazon’s Prime loyalty program in parts of Paris last September.
This partnership has been closely watched as Monoprix was the first French retailer to agree in March 2018 to sell products via Amazon, causing a stir in the fiercely competitive domestic market.
France is Amazon’s third largest market in Europe, after Britain and Germany. Amazon is the e-commerce leader in France with a market share of 17.3 percent, but its grocery market share stands at just 2 percent, according to Kantar data.
The US group, which has run its Amazon Prime express delivery service in Paris since 2016, has made no secret of its desire to launch a grocery delivery service in France as part of its ambitions to expand in food retail.
But the French supermarket sector has powerful incumbents such as Carrefour and Leclerc, operating at low margins and with a dense network of stores.
Earlier this week, Casino said it would sell 12 Casino hypermarkets and 20 supermarkets to Apollo Global Management in a deal worth up to €470 million ($529 million).