Foreign investors buying large real estate developments in Chile
Foreign investments are growing in Chile and buying up large real estate developments. Chile’s economic and financial stability is attracting European and Asian investors. A lack of investment opportunities in the saturated European market, particularly in Spain, Italy and England, prompts investors to look towards attractive alternatives like South America.
The main real estate areas attracting foreign investors in Chile are office buildings and developments related to tourism. Investors are especially drawn to double-digit profit margins.
The German group, Union Investment Real Estate, recently purchased two buildings in downtown Santiago, adding to their already existing properties in the eastern sector, Torre París in Providencia and Birman in Las Condes.
The emblematic development, Titanium, has several European and Asian investors who hold 50 to 70% of the project. The Portugese group, Hilario, recently purchased a 5,000 m2 building. Credit Suisse, another European group, recently purchased an office building in El Golf.
Among those exploring the Chilean market is the Russian fund, Vitch, who has 75 million dollars available for the purchase of buildings in the Eastern sector of Santiago. The Marshall fund, from Hong Kong, is planning on launching a project in Alonso de Córdova, near Nueva Las Condes, which would include a Donald Trump hotel.
The increased demand in Chile as a touristic destination over the past ten years, requires first-rate infrastructure. Sovereign Hospitality Holdings, by the M.A. Kharafi group, is among the most interested in developing projects related to tourism. It announced that it would operate, not only hotels, but other tourism ventures as well.
Investors are also arriving in Chile from across the Andes Mountains. The Argentine fund, VTM, is negotiating the purchase of a 40,000 m2 building and 40 parking lots, between Eliodoro Yañez and Pedro de Valdivia. The operation would close at 4.5 million dollars and would include buildings in Viña del Mar and Concepción. The Brasilian group, Taba, is negotiating the purchase of a building in Providencia and another in the area of Padre Mariano.
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