Sovereign wealth funds (government-held investment funds) plan to further increase their allocations to real estate both in their home countries and abroad this year, according to Invesco’s latest Global Sovereign Asset Management Study. Survey respondents ranked the U.S. as the most desired country for real estate investment for the third consecutive year. Overall, respondents said they would increase their investment into their home markets to 4.7% of all assets, up from 4.4% last year. International real estate investment by sovereign wealth funds is expected to increase to 3.4% this year, up from 2.2.% in 2016. Via Pensions & Investments
German grocer Lidl, already perceived as a threat to major U.S. grocers such as Trader Joe’s and all-in-one retailers like Wal-Mart, keeps eschewing the traditional. Lidl just announced a partnership with Heidi Klum to feature the model’s Klum collection of apparel at its stores. The company has said it will host “Lidl Fashion Weeks,” selling different fashion apparel collections in its stores throughout the year. On June 15, the first nine Lidl stores will open along the East Coast, in Virginia, North Carolina and South Carolina. Via Retail Dive
Property-level fundamentals are expected to remain positive this year, according to Fitch Ratings’ first-ever U.S. Equity REITs Handbook. Fitch found gave the retail sector a neutral rating, citing rent growth concerns in class-B malls but a strong outlook for grocery-anchored strip centers. Multifamily sector is expected to perform best, but grow as much as it did in 2016. Should the economy slow, industrial REITs (long-boosted by ecommerce demand) could see long-term risk, Fitch reports. The firm also found REITs are focusing on redevelopment as acquisitions become a pricier play. Via MultiHousing News
More News to Note:
Foreign buyers chased Florida, Texas properties in 2016
Trump Organization plans 3-star hotel chain ‘American Idea’ to grab budget travelers
Developer Barry Shy asks $100M for one-acre parking in downtown LA
Amazon expands into Alabama, first site will be 362k-sq.-ft. ‘sortation center’
