Cross border investments – Bengaluru entered the list of top 10 cities that attracted maximum cross-border investment in Asia Pacific (APAC) for the 1st time. It will be receiving over USD 1.6 billion last fiscal according to property consultant CBRE.
Asia-Pacific (abbreviated as APAC) is the part of the world in or near the Western Pacific Ocean. The region varies in area depending on which context, but it typically includes much of East Asia, South Asia, Southeast Asia and Oceania.
APAC’s members include accreditation bodies, accreditation focal points and other organisations that have an interest in accredited conformity assessment results.
APAC is recognized by the Asia Pacific Economic Cooperation (APEC) as one of four APEC Specialist Regional Bodies (SRBs) that support the work of the APEC Sub-Committee on Standards and Conformance.
Cross-border investments :
Cross-border investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor
Cross-Border Transactions include both outbound and inbound transfers of property, stock, or financial and commercial obligations between related entities resident or operating in different tax jurisdictions.
CBRE South Asia Pvt. Ltd, – Cross border investments :
CBRE South Asia Pvt. Ltd. – India’s leading real estate consulting firm’s Asia Pacific Investor Intentions Survey 2019 findings revealed that Bengaluru – the capital city of Karnataka- for the first time has featured in the list of top ten destinations for cross-border investment across Asia Pacific.
The survey revealed that India was among the top five preferred markets in APAC on the back of the launch of the first Real Estate Investment Trust – REIT (Embassy-Blackstone) and the resulting improved market transparency. The drivers for this trend were new infrastructure and potential growth opportunities in the market.
REIT – Real Estate Investment Trust :
The first REIT by Embassy Group and Blackstone Group LP was launched in India in March this year and it is expected to catalyse investments in the country.
Improved investor sentiment in office assets is likely to expose potential quality buildings as a fundraising avenue for developers and also propel major corporations to lease/purchase space in these development.
Preferred investment destination :
Bengaluru featured as the first Indian city in the list of preferred investment destination on the basis of its growing reputation across the globe as the home base to several international corporates,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
Bengaluru city with a significant talent base and world-class infrastructure offers several investment grade options in office, retail, as well as residential segments,
Bengaluru is considered as one of the fastest growing cities in India with the presence of important players from the areas of information technology, biotechnology, pharmaceuticals, manufacturing and other sectors.
Money and Borders :
Cross-border investments in a changing global marketplace – Governments appear to have become bigger players in economic affairs, and we may be entering an era in which nationalist ambitions will make globalization more difficult to manage.
What is clear is the need for companies and funds pursuing cross-border investments to adapt their investment strategies and operations to function effectively at the intersection of government, business and finance.
The upside story on cross-border investment is one that companies can use to good advantage. Inbound and outbound investments confer substantial benefits – they create employment, stimulate R&D, generate tax revenues, and enhance competition.