Tag Archives: CBRE

CBRE Asia Pacific logistics report, May 30, 2014

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, CB Richard Ellis, CBRE, Track2Media, Track2RealtyTrack2Realty: CBRE has launched its first Shaping Trends in Logistics report. It examines trends that are acting as key agents of change in the Asia Pacific logistics market. The report focusses on the factors behind the strong underlying demand for logistics space, and expected positive rental growth for Asia Pacific’s logistics warehouses.

Key highlights from this report include:

Increasing expansion of organised retail: The continued trend of developing well-organized shopping malls, increasing trend of urbanization, and growing middle class in emerging and less-developed markets will support retailer expansion in APAC, including the build-out of store networks and set-up of supply chains. This is especially true in under-represented developing markets such as China, India, and Southeast Asia.

Continued growth of e-commerce: Operational success rests upon inventory management and rapid delivery, requiring well-stocked and well-located logistic facilities. Whilst China and Japan, the largest markets by sales turnover, have seen a marked increase in modern logistics facilities, potentially high-growth, emerging markets such as India and Southeast Asia remain undersupplied.

Looking at fundamentals, online user bases are expected to increase drastically in the coming years. Between 2013 and 2020, the largest percentage increases in user bases are expected in India (60% or 100 million new users).

More dependency on third-party logistics (3PLs): With rising demand for organized retail and growth of e-commerce, demand from 3PL providers will rise. The need for delivery efficiency, inventory management, and freight-forwarding is driving the need for experienced logistics operators in the region, leading to greater outsourcing to logistics service providers.

Anshuman Magazine, CMD of CBRE South Asia says, “High-growth potential markets are concentrated in emerging cities, especially cities in India, Indonesia and Vietnam. Well-located and equipped warehouses, for instance, are absolutely crucial for online retailers. Our tracking across the APAC region suggests that sector growth is translating into leasing activity, with major leases signed by sector occupiers such as Amazon, Sunning and Flipkart in China and India during Q1 2014.”

CBRE’s Director of Asia Pacific Research, Jonathan Hsu, adds, “Logistics warehouse markets sit atop fundamental and far-reaching structural trends, such as rapidly urbanizing cities, emerging consumer bases and evolving trade hubs that are shaping the economies of the Asia-Pacific region. Against the backdrop of an improving macro outlook, these fundamental trends will emerge in the form of expansion of organized retail, growth of e-commerce and the increasing prominence of 3PL companies, forming a solid demand outlook for the APAC region.”

Whilst overall supply will increase by 80% y-o-y in 2014 in seven key markets, we expect overall rental growth in CBRE’s APAC Logistics Index of 3-4% y-o-y in 2014, mainly led by Hong Kong at 7.5% y-o-y, followed by Tokyo, Shanghai, and Guangzhou at 4% y-o-y. Rental growth in Singapore, Beijing, and Sydney, will lag other APAC markets with rental growth of 0-1% y-o-y expected this year.

CBRE poaches top Credit Suisse execs

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, CB Richard Ellis, CBRE, Track2Media, Track2RealtyThe Indian arm of CB Richard Ellis (CBRE), the global real estate consultancy giant, has poached two top real estate fund managers from another global financial major, Credit Suisse, to strengthen CBRE’s capital market offerings in India that could eventually lead to managing investors’ money also.

Gaurav Kumar and Nikhil Bhatia, who five years ago set up and then till recently managed Credit Suisse’s real estate private equity fund in India, have been appointed as co-heads of CBRE’s capital markets division.

Anshuman Magazine, Chairman & Managing Director, CBRE, South Asia, has confirmed it saying that Kumar and Bhatia have expertise in those areas which compliments the existing businesses of the firm in India. “It’s a rare combination. They have expertise in structured deals, developing businesses, asset management and divesting properties,” Magazine said. “In India, we will be only (real estate consulting) company with capital market business,” he said.

For both Kumar and Bhatia this is a kind of homecoming. Before quitting CBRE in 2006, while Kumar was the head of its consulting practice, Bhatia headed the transactions business out of Mumbai.

In February, the US-headquartered CB Richard Ellis group acquired Dutch financial major ING’s real estate fund management business for Europe and Asia regions. Currently, CB Richard Ellis Investors, the group’s global investment management business, manages over $60 billion worth of funds in the real estate sector.

Office space leasing soars 33% in Apr-Jun

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, CB Richard Ellis, CBRE, Track2Media, Track2RealtyRealty consultant CB Richard Ellis India said on Wednesday, July 20, leasing activities for office spaces in major cities during April-June period has increased by over 33% to eight million sq ft compared to the previous quarter.

According to the latest survey ‘India Office Market View – Q2, 2011′, about eight million sq ft of office spaces were absorbed during the second quarter of this year as against six million sq ft in the January-March period.

“This steady pace of space take up is primarily fuelled by sustained economic development and increase in outsourcing business, resulting in robust corporate expansion plans,” CBRE South Asia Chairman and MD Anshuman Magazine said in a statement.

The office space absorption in seven key micro markets — Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata — has been increasing over the past few quarters, he added.

Of the total absorbed area, NCR, Mumbai, Bangalore and Chennai were leading the tally that accounted for almost 80% of the absorbed spaces in the country in the three-monthly period.

“However, though there is continued demand, most of the office micro markets have an oversupply situation. With additional space to be added in the future, especially in IT/SEZ space, rental values in certain micro markets are expected to remain flat,” Magazine said.

The second quarter of 2011 witnessed addition of about 10 million sq ft of new areas in all major cities.

The report points out that while demand remained buoyant in the last few months, the large supply pipeline might alter the demand curve in the coming few quarters.

CB Richard Ellis reports $1.2 billion revenue in quarterly results

Posted on by Track2Realty

CB Richard Ellis, CBRE, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comCB Richard Ellis Group Inc., the commercial real estate services company has reported first quarter 2011 revenues of $1.2 billion compared with $1.0 billion in the year-earlier quarter, reflecting an increase of 16%. The strong quarterly revenues marked a solid start to fiscal 2011 as first quarter has been historically the seasonally weakest quarter for the company. Total revenues in the reported quarter were in line with the Zacks Consensus Estimate.

The company reported a net income of $34.4 million or 11 cents per share during the quarter, compared with a net loss of $6.6 million or 2 cents in the year-ago period. Excluding non-recurring items, CB Richard Ellis reported a net income of $40.6 million or 13 cents per share during the quarter compared with $3.2 million or 1 cent in the year-earlier quarter. The first quarter 2011 recurring earnings marginally beat the Zacks Consensus Estimate by a penny.

First quarter 2011 EBITDA (earnings before interest, tax, depreciation, and amortization) increased 51% to $113.0 million, compared to $75.0 million in the year-ago quarter. The better-than-expected results were primarily due to improved performance across almost all geographic regions and business lines against a backdrop of steadily improving global market fundamentals.

CB Richard Ellis witnessed robust global property sales and leasing activities during the quarter buoyed by its leading market position in the world’s major business centers. Global property sales revenue surged 34% year-over-year during first quarter 2011, as credit availability became easier and broad investor sentiment improved. CB Richard Ellis signed 44 long-term real estate outsourcing contracts (including 13 new clients) during the quarter, with a special emphasis on health care and government institutions. Global leasing revenue increased 8% during the quarter, while outsourcing revenue increased 14% – the best year-over-year growth rate for this business line since the third quarter of 2008.

Geographically, revenue growth during the quarter was led by the Asia Pacific region. Revenue in the Asia Pacific region rose 19% powered by strong increases in India, Japan, Singapore and China. Revenue in the Americas – the largest business segment of the company, increased 16% driven by robust growth in all business lines. Revenues for the EMEA (Europe, Middle East and Africa) region grew by 9% year-over-year due to healthy outsourcing gains, partially offset by slower property sales and leasing activity primarily in the U.K.

The Global Investment Management segment, comprising investment management operations in the U.S., Europe and Asia, reported revenues of $50.3 million during the quarter compared with $39.4 million in the year-earlier quarter driven by higher asset management and acquisition fees. Assets under management totaled $37.9 billion at the end of the quarter, up 14% from first quarter 2010. During the quarter, Development Services segment, that includes real estate development and investment activities primarily in the U.S., reported revenues of $19.2 million compared with $18.3 million in the year-ago quarter. The development pipeline of the company totaled $4.9 billion, up $0.2 billion from first quarter 2010.

At quarter-end, CB Richard Ellis had cash and cash equivalents of $427.6 million. The gradual revival of the overall economy has enabled the company to drive its growth engine and management further expects to continue the momentum in 2011 as well. We also remain encouraged by indications of stabilization and recovery of market conditions.