to combine their capital with others to reap the rewards of real estate equity ownership . These pools take several forms ; public and private REITs , limited partnerships and commingled investment funds are all common in the U . S . market .
Often , these pools are raised in advance by investment groups , and investors are asked to evaluate the investment team and strategy , not individual assets . This method of capital raising and asset acquisition has been slow to attract Chinese capital , but it is very common and supported by centuries of real estate and financial law in the U . S .
Over decades , it has proven to be far easier to sell a financial instrument in the U . S . ( like a partnership or fund interest ), than to sell 70 square meters on the 11th floor of an office building in Shandong Province . Chinese capital is slowly losing their aversion to many of these structures . But , early Chinese investors in the U . S . tended to buy what they could afford individually ; this approach may often lead to the purchase of lower quality assets in secondary locations . With a good portion of an investment return coming from appreciation , the quality of asset and location are paramount ; but not always sufficiently considered ; they are easily overlooked if the direct ownership preference dominates the investment process .
Understanding where each market stands from both a long-term maturation status and a cyclical real estate condition provides a framework for investing in each nation and influences the perception of risk vs . real risk for investors . The difference in mindset , based on historic experience , between Chinese and U . S . investors is clear ; being able to differentiate between the two viewpoints is essential to making better financial decisions .
中国资本正在慢慢规避其投资对上述很多结构所产生 的损失 。 但是 , 早期进入美国市场的中国投资者往往会 购买其个人能够承担的资产 , 这种方式通常会导致投资 者购买二等地段中的低质量资产 。 由于大部分投资收 益来自于增值 , 资产质量和地段是最重要的 ; 但这两个 因素并非总是得到充分考虑 。 如果在投资过程中投资 者倾向于直接所有权 , 则会很容易忽视这两个因素 。
从长期成熟度和房地产周期性状况角度理解每个市场 所处的阶段为投资每个国家提供了框架 , 并影响着风 险预测和投资者面临的实际风险 。 根据历史经验 , 中 国和美国投资者在心态方面存在着明显的差异 , 能够 区分这两种观点对于做出更好的金融决策是非常重要 的 。
机构投资者的作用
美国市场中 “ 整体资产 ” 投资倾向的变化使得大型机 构投资者认识到房地产所有权的独特优势 , 从而促使 其进入美国市场 。 这些投资者要求建立商业和法律框 架 , 消除一些投资风险和不确定性 。 几十年来 , 市场可
ROLE OF INSTITUTIONAL INVESTOR
The evolution of the “ whole asset ” investment preference in the U . S . market stimulated the entry of large institutional investors that recognized the unique advantages of real estate ownership . In turn , these investors demanded business and legal frameworks that eliminated some investment risk and uncertainty . Over decades , the market became more predictable , and with increased certainty , more institutional investors were attracted to the market .
Today , institutional investors play a critically important role in U . S . real estate markets . They often provide the capital ( debt and / or equity ) for new development and are large owners of investment real estate . Active institutional investors in the U . S . include public and private pension funds , endowment funds , insurance companies , public and private REITs , private equity funds , institutional asset managers , sovereign wealth funds , and other quasi-institutional foreign capital .
For many , real estate provides a good balance of current income and long-term appreciation . Additionally , private institutional real estate investment has a low correlation to other investment vehicles , meaning its returns do not move in the same direction and / or to the same degree as other investment products . For this reason ,
29 THE CHINA INVESTOR