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.


Lloyd’s of London profits quadruple on investment gains

Updated 18 September 2019

Lloyd’s of London profits quadruple on investment gains

  • Specialist insurer reports first-half pre-tax profit of $2.87 billion

LONDON: The 330-year old specialist insurance market Lloyd's of London reported a first-half pre-tax profit of 2.3 billion pounds ($2.87 billion) on Thursday, up nearly fourfold on investment gains and a cutback in underperforming business.
Lloyd's, which covers commercial risks from oil risks to footballers' legs, suffered steep losses in 2017 and 2018 due to natural catastrophes such as hurricanes, typhoons and wildfires.
Lloyd's last year told its 99 member syndicates to ditch the worst performing 10% of their businesses.
"It is encouraging that the Lloyd's market is showing increased discipline in 2019," Chief Executive John Neal said in a statement.
"We need to make some brave choices on how to meet the expectations of our customers and all our stakeholders in the future."
The market has proposed its members move to electronic exchanges next year, as it responds to competition from cheaper rivals.
Further details of the strategic changes will be released on Sept 30.
Net investment income rose to 2.3 billion pounds from 0.2 billion a year earlier, helped by strong equity returns.
Gross written premiums rose 1.7% to 19.7 billion pounds but the company's combined ratio, a measure of underwriting performance in which a level below 100% indicates a profit, weakened to 98.8% from 95.5%.
The results compare with a profit of 0.6 billion pounds a year ago.
Premium rates rose by an average of 3.9%, Lloyd's said.
Lloyd's in May asked the Banking Standards Board to conduct a survey of the insurance market's 45,000 participants on issues such as honesty and respect to help to improve its working environment, following allegations of sexual harassment at member firms.
The survey will be published on Sept 24, Neal said on Thursday.