It has been revealed that the GIC - the Government of Singapore Investment Corporation - has invested at least 300 million into Eurozone property deals, with two deals in Spain and Italy. If this is a sign of an upswing in the Spanish economy (particularly in the property market), could now be a good time to do what Brits have always done: buy Spanish real estate
GIC Shows Trust In Eurozone Through Large Investment
It might appear strange that the GIC has decided to invest relatively heavily in two of the Eurozone's least affluent economies - Spain and Italy - but that is exactly what it has done. The Asian fund (which controls a portfolio of over $78 billion USD) has recently purchased 30% of the Spanish property group GMP, which constructs business parks. Following that, GIC has purchased the Roma Est. shopping center that lies just to the east of Rome.
We can infer from these significant investments that the GIC believes one of two things to be the case. First, that by investing in these nations, it can help catalyze their success, which will in turn generate them more money in the long run; or second, that the GIC believes the Spanish and Italian economies are due to be elevated by some other natural causes, and that by investing early, it will, in turn be able to capitalize upon.
Either way, the GIC will likely stand to make significant gains from these investments over the coming years. The question for those of us who are looking for our own investment opportunities, is whether individuals such as ourselves similarly stand to gain from our own potential investments in property in these regions.
Spanish Real Estate Investment
It seems as thought the Brits have always had an interest in purchasing Spanish real estate. It makes for the perfect pension investment, but unfortunately the economic climate of the last half-decade has made the challenge of investing this amount of money more strenuous than even before.
Now that the worst of the downturn is over and Eurozone economies are starting to recover, investors could put these facts together with the news of GIC's investments, and conclude that now could be a good time to invest in Spanish property. If you were smart enough to invest in a self invested pension plan like those offered by James Hay, you can draw out enough money to cover the deposit you'll require for your investment.
However, our advice, would be to be cautions and see how Spain and Italy do over the next quarter or two. When you're not a national investment firm, it can sometimes be a good idea to play it safe.
Comments