Property investors face diverse 2011 market-LaSalle

* Development, leasing most attractive in Asia Pac-LaSalle

* Low int. rates in slower U.S., Europe to boost core assets

LONDON, Dec 14 (BestGrowthStock) – Real estate investors face a
challenge in devising strategies for 2011 due to the varying
speeds of recovery across the global economy, a report from
LaSalle Investment Management said on Tuesday.

In Asia Pacific, where there is strong growth, development
and leasing will provide some of the best investment
opportunities, while edge-of-core properties will be attractive
in the UK, France and the U.S., economies where there has only
been a modest rebound, the group said.

“Investment performance in the rapidly growing countries
will be volatile, due to the waves of liquidity that wash over
these less mature markets,” Jacques Gordon, Global Strategist at
LaSalle, a unit of Jones Lang LaSalle (JLL.N: ).

“Growth strategies that take advantage of rapid urbanisation
and a burgeoning middle class will be most successful,” Gordon
said, adding the best opportunities include selective
residential developments in China’s second-tier cities.

For countries seeing low growth, such as Japan, the United
States, the United Kingdom and in the eurozone, LaSalle said
real estate investment performance could get a boost from low
interest rates and a rising flow of debt and equity capital.

“While investor appetite for risk starts to grow once again,
value-add and opportunistic investing will be more attractive in
the States, with core investing showing the most signs for
improvement,” said William Maher, LaSalle’s head of U.S.
strategy.

He forecast U.S. transaction volume at between $150 billion
and $200 billion by the end of 2011, with the most attractive
core opportunities in technology, healthcare and entertainment.
He said some of those areas would benefit from pent-up demand
and could outpace the national average.

In Europe, investors seeking higher returns, especially in
the UK, Spain, Germany and France should look to banks that are
trying to reduce their exposure to property as a potential
source of deals, the report said.

It also recommended focusing on retail and central London
offices and avoid regions outside the UK’s South East, and to
target retail and logistics in Germany and France, as well as
offices in France.
(Reporting by Daryl Loo; Editing by Karen Foster)
(See www.reutersrealestate.com for the global service for real
estate professionals from Reuters)

Property investors face diverse 2011 market-LaSalle