Asia-Pac's ultra-rich investors snapping up prime retail assets

Check out these notable deals.

According to a report by JLL, the transaction of prime retail assets in the region was dominated by buying activity from private, ultra high net worth investors.

Two prime high street/retail podium transactions in 2013 consisted of Asia Pacific Land’s sale of the Tiffany store in Ginza, Tokyo, and the Park Hotel Group’s sale of the Knightsbridge retail podium on Orchard Road, Singapore. The Tiffany building was bought by private investor Masayoshi Son, of the technology group Softbank.

The Knightsbridge retail podium was acquired by Bright Ruby Resources, which is controlled by the Du family ofChina. 

While the acquisition included a hotel that sits above, at a total transaction size of SG$1.16 billion (US$921 million), it is understood that the retail component made up approximately SG$750 million (US$595 million) of the purchase price.

Much like investment in the hotel sector, prime retail assets appeal to investors’ emotions as well as offering sound investment returns and wealth conservation qualities. 

The amount of private wealth that is targeting prime retail real estate investment – at lot sizes that historically have only been achievable by large pension funds and listed entities – is growing. This is particularly true for prime assets in global retail cities.