Spain’s richest billionaire, Amancio Ortega, founder of fashion brand Zara, expanded his investments in commercial real estate last year. By acquiring at least 10 towers in North America and the United Kingdom for over $2 billion.
while other billionaires They turn to focus more on commercial real estate. After this asset was hit hard by the COVID crisis. and the pressures of working styles becoming increasingly remote, according to Knight Frank’s 2023 Wealth Report.
What happened was the complete opposite of institutional investors. where they reduce their investment in office buildings Logistics buildings and rental homes totaling $1.1 trillion. After starting to see some defaults on debt payments Due to rising interest rates during the era of low-cost finance is coming to an end.
Billionaire Family Asset Management Fund and private companies Both take advantage of their own low debt ratio. and long-term holding ability Invest in commercial real estate representing a total value of $4.55 billion
However, the total investment by the world’s billionaires in such assets fell 8 percent from the previous 12 months to $493 billion. which is a time when demand is suppressed from the COVID period while trading volume fell by 28%.
Alex James, Head of Private Client Advisory, said: “Private investors are taking advantage of asset prices being revalued. and a strong currency This trend will continue as billionaires are looking to protect their wealth.”
These numbers underscore the long-term investment outlook of billionaires. and how they distribute their wealth into real estate. This is when the price of real estate bonds as collateral is declining. while interest rates are rising
Ortega acquired five U.S. logistics facilities for more than $700 million in September. Including the purchase of a luxury skyscraper in Seattle worth $ 300 million last December. After acquiring an office building for Amazon.com in the same city
Joe Tsai, co-founder of Alibaba Group Holding, has acquired six five-star hotels in Spain through family asset management firm Blue Pool Capital.
According to Knight Frank, the commercial real estate that private investors buy the most is Rental apartments 42.8%, each deal worth at least $25 million, followed by office buildings 18.5%, industry and logistics 15.5%, retail 13.7%, hotels 6.7%, and others 2.7%.
New York was the city with the most investment in commercial real estate last year. While London is the city where foreign investors invest the most.
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