Japanese’s whispers

I have put on a paper some thoughts while I was in roadshow in Asia, following meeting with investors and investment analysts. As a disclaimer, I am writing this in the middle of a jetlagged night, and I clearly do not pretend to know what I am talking about here.

1- In China, it seems that it is more reasonable to invest into less known secondary cities, than in the majors. Rational being that a lot of speculation is driven by some cities names, not by economics. Ring a bell in Germany as well. Except that Frankfurt is by no way a major city by Chinese standards

Same Player Shoot Again.

A recent article in PropertyEU (http://bit.ly/dXPKja) and other real estate newsletters report on the last IPD/IPF conference where a number of commentator have indicated that the solvency II directive will increase insurance companies willingness to lend to real estate. This might as well be true, but between you and me Solvency II will have potentially more far reaching implication for the real estate market as a whole than just additional lending. 


More interestingly, one of the main commentator is reported to have said: "I expect CMBS to return 'in some form or shape ... because without access to the capital markets we don't stand a chance".