Commercial property investment to rise in 2011-study
* Direct investment volumes seen up 25-35 pct to $350 bln
* Asia-Pacific to lead upswing, ahead of U.S. and Europe
* Secondary property values seen near cyclical lows in 2011
LONDON, Nov 18 (Reuters) - Direct investment into global commercial property will spike by between 25 and 35 percent to more than $350 billion in 2011, its highest level since 2008, driven by strong growth in Asia-Pacific, research showed on Thursday.
Property consultancy Jones Lang Lasalle (JLL.N) said in its Global Market Perspective report that 2011 "looks to be a promising year for investors seeking to take advantage of distressed opportunities in commercial real estate."
It added: "The recovery ... will be segmented by product type and geography, with prime property continuing to perform better than secondary ... and Asia-Pacific leading the upswing, ahead of Europe and North America.
"We will see movement into secondary markets as the supply of prime product dries up or is bid up to irrational levels."
Robust competition will push up the capital values of trophy assets during the year, while values of a large chunk of the secondary market are seen "floundering near the cyclical bottom".
Prime offices in Moscow are seen rising in value by about 20 percent, while those in Tokyo, Hong Kong, Singapore, London, Paris, Sao Paulo, Shanghai, New York, San Francisco, Toronto and Washington DC are seen up by 10 to 20 percent, JLL said.
Banks and loan servicers had recognised rising capital values had provided a window of opportunity for offloading non-performing or distressed loans, and were starting to take a more aggressive approach to disposing of them, JLL said. (Reporting by Andrew Macdonald; Editing by David Holmes) ($1=.7331 Euro) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)
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