Investors are bullish on Asia's hotel industry.
According to the latest data from Jones Lang LaSalle's Hotels & Hospitality Group, hotel investment volumes in Asia reached $3.9 billion at the end of the third quarter, rising 145 percent from the same period previous year. villa
The region's hotel sales totaled $1.2 billion in the third quarter, up 41% from the previous year, as the robust market celebrates its best year since the financial crisis.
"Hotel trade performance in Asia has seen a tremendous turnaround over the last two years, none more so than in Singapore," said Mike Batchelor, managing director of JLL's investment sales, hotels & hospitality. "The Grand Park Orchard Hotel and surrounding Knightsbridge retail podium were the single largest asset transaction in the city's history this quarter."
According to the business, an overall air of optimism in Asia is pushing prices over their 2007 peak, with strong sales led by Japan and Singapore. However, as investment-grade hotels grow harder to come by, investors are flocking to Thailand, the Seychelles, and the Maldives.
In the next months, the firm expects $1.3 billion in traded contracts to add to a healthy pipeline for the rest of the year.
"We are boosting our regional full year total sales prediction from $3.5 billion to $5.5 billion, confirming 2013 as the biggest year since 2008," Mr. Batchelor said, citing the volume of hotel deals set to close before the end of the year.
The 'New Bund' project in Shanghai has been announced.
Tishman Speyer, a New York-based developer, is building a 3-million-square-foot mixed-use complex in Shanghai's "New Bund" district.
The project is a joint venture with Shanghai Lujiazui Group and is largely funded by the developer's Rmb3 billion ($490 million) investment fund. Tishman Speyer raised money for the fund mostly from Chinese investors rather than foreign sources.
"No one knows the Chinese real estate market better than Chinese investors, and there are so many misconceptions about China in other countries," said Rob Speyer, co-chief executive of Tishman Speyer.
Tishman Speyer provided few details about the proposed project, other than the fact that it will include "Class A workplaces, upmarket retail choices, and waterfront residential apartments," according to Tishman Speyer.
Along the Huangpu River in Pudong, the "New Bund" neighborhood, also known as Qiantan, is located south of the Shanghai Expo site. The master plan spans 2.83 square kilometers, with developers led by Shanghai Lujiazu hoping to transform the area into a new financial district.
The proposal plans for 3.5 million square meters of construction, with 50% dedicated to commercial structures, 40% to high-end residential communities, and 10% to public services.
In a statement, Tishman and Speyer said, "The New Bund offers exceptional accessibility to public transit and significant promise for long-term prosperity."