Wednesday, 22 June 2011 13:51
SINGAPORE: Property investment firm MGPA has a warchest of more than $1 billion to invest in new Asian and European property and sees Tokyo offices as one of its top picks, Group CEO Simon Treacy said on Wednesday.
But the firm, 56 percent owned by Australia's Macquarie , is wary of Hong Kong where it believes the office property market is set for a major correction as China's economy slows and US interest rates begin to rise.
"We think Hong Kong is a bubble looking for a pin and that it could represent a great buying opportunity in 18 months' time once China continues to slow down and goes through a soft landing and interest rates go up in the US," Treacy told the Thomson Reuters Global Real Estate and Infrastructure Summit.
"Hong Kong's property market will go through a major correction next year sometime," said Treacy, whose firm currently has about $11 ...