NewING Real Estate Finance expects Asian outbound property investment to increase on euro weakness

ING Real Estate Finance, part of ING Commercial Banking, expects Asian outbound property investment to increase this year, with a weak euro fuelling Chinese demand for European assets.

The euro has lost more than 20 per cent against the US dollar in the past year, offering greater buying opportunities in Europe for investors in Hong Kong, where the currency is pegged to the greenback, and in China, where the yuan is more loosely tied to the US dollar.

Europe is already an attractive investment destination among Asian investors, and Robert Scholten, head of ING Real Estate Finance Asia-Pacific, said the growing number of Asian investors buying overseas real estate was also driven by diversification and higher yields.

Property consultant CBRE says office yields in Europe range from 3.8 per cent a year in London to 5.8 per cent in Milan.

"It will continue to be a trend," he said.

According to Colliers International, outbound investment flows into property from Asia last year surged 38 per cent year on year to a record US$46 billion.

ING Real Estate Finance is a commercial real estate financier with a pan-European and Asian platform.