This website uses cookies to ensure you have the best experience. Learn more

Cadim: The China And India Real Estate Market Entry Decisions

1597 words - 7 pages

Cadim: The China and India Real Estate Market Entry Decisions

I. INTRODUCTION
Cadim is a real estate division of Caisse de Depot et Placement du Quebec (Caisse), Canada’s largest pension fund management firm. Caisse is the largest institutional investor in Canada, overseeing more than $245 billion in assets and carrying out more than $12 billion in transactions daily. Cadim is one of Caisse’s three real estate divisions comprising around 6.23% of Caisses portfolio ($15.3 billion). Cadim focuses on residential and hotel markets, while the other two real estate arms ...view middle of the document...

III. GENERAL ENVIRONMENTAL

Canada/Developed World:

To understand why Cadim is looking for investment abroad we must first understand the investment landscape of their current markets, North America.The internal rate of return for real estate in the North America from 2005-2007 was below the 14% risk –adjusted return that Cadim targeted. Despite there being individual deals which were profitable because Cadim scale, continuous exceptional performance would be very difficult. Despite being a multinational company, because Cadim’s previous real estate investments are all in developed countries they are not a diversified as they could be. Cadim thus decided to look to developing nations who’s average returns were considerably higher.

China:
General:

Real Estate:
The Chinese real estate market has grown exponentially over the past decade. China has built the equivalent of a city the size of New York once a year, but can still not keep up with demand. This demand is predominantly driven by residential and infrastructure construction in major cities. The surge in real estate production and demand has been driven by mass migration of the Chinese people from more rural areas to the more populated metropolitan areas and government supported infrastructure projects. This real estate growth has been one of the primary causes allowing China’s economic to prosper.

Because Chinas GDP is directly tied to construction, China has continued to increase its construction as a way of “inflating” its GDP. I say “inflating” its GDP because despite not being able to keep up with demand, the residences being construction do not always get used or even sold. To draw a comparison, the US GDP is calculated by real estate sales, not allowing the US to artificially inflate its GDP just by producing.

Currently there are around____ ghost cities in China capable of holding around_____ people. These ghost cities have and will most likely remain vacant because the avg. cost to rent or by one of these newly constructed residences is far above what the avg. Chinese is capable of affording. Despite the rampant vacancies the Chinese government still continues to fund massive construction indicatives.

India:
General:
India’s economy is booming! With large decreases in poverty, increases in literacy and GDP, India is continuing to make its way out of the third world and into the first. India is predicted to surpass even China in growth by 2050. A competitive private capital market has instilled Indians with a low cost high quality mentality and has resulted in some of the highest return rates for any country. India has been averaging 6% growth compared to China’s 9.5% with half the investments. India capital efficiency is one of its strongest economic benefits.

Despite this India is still a complicated place for foreign investors. A weak parliamentary government has very little purview over the provincial and local ministers who were elected entirely...

Other assignments on Cadim: The China And India Real Estate Market Entry Decisions

Relationship Between The Savings Rate And Economic Growth Of China

1982 words - 8 pages determining factors in China’s successful transition from a planned, low-income economy to a market-based, middle-income economy. Figure 3: Saving and Investment Rate of China First, they appear to have played an early role in China’s successful transition by allowing China to maintain rapid investment growth throughout the reform period, even in the early period when foreign capital was difficult to attain. While much of this investment was

Innovation And Collaboration At Coca-Cola- It's The Real Thing Case Study

826 words - 4 pages , operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). Coca –Cola is doing their business throughout the whole world in an established market. There is a pure competition market in that industry. They are providing their company all these primary values. The & quot; support activities & quot; include: administrative infrastructure management, human resource management, technology (R&D), and

To What Extent The Role Of The People's Mediation Committees In China Now Is Still Significant When Some Cities Tend To Modernize And Others Tend To Conserve Traditionalism?

3644 words - 15 pages Introduction It can happen that sometimes you have a personal dispute with a family member, friend or neighbour, or a legal dispute involving business. There are three main ways as alternatives to going to court to resolve a dispute in China: negotiation, mediation and arbitration, they are ADR. ADR means “Alternative Dispute Resolution” and it refers to various processes, commonly used in civil law tradition, which have in common the aim of a

Submit A 4 Page Paper Discussing Three Types Of Cybercrime Risks And How Organizations And Individuals Can Protect Themselves From These Schemes. Please Identify At Least One Real-Life Exmaple And...

1097 words - 5 pages committed where the computer or electronic data device is integral to the criminal act (Kranacher, Riley, and Wells 114). Although many do not believe that they can cause any vital damage, cybercrimes such as wiretapping, piggybacking, and computer viruses can have significant repercussions on various organizations. By identifying the type of cybercrime, discussing how organizations can protect themselves from it, and multiple real-life examples, an

Dlf Strategic Analysis

2244 words - 9 pages across six business lines with the highest standards of professionalism, ethics, quality and customer service. DLF Values    Sustained efforts to enhance customer value and quality. Ethical and professional service. Compliance and respect for all community, environmental and legal requirements. ANALYSIS OF THE EXTERNAL ENVIRONMENT: REAL ESTATE SECTOR Real estate is one of the emerging sectors in India. Market analysis pegs returns

Brand Perception Of Cafe Coffee Day

7184 words - 29 pages -marketing itself as a ‘premium coffee chain’. At present, CCD’s presence at every nook-and-corner possible, from petrol bunks to educational institutions gives it a first-mover advantage over its future competitors in India. UPHILL TASK With real estate costs escalating, and most locations being tapped already, along with an effectively priced menu by the market leader, Starbucks has some major breakthroughs to make in order to expand. To retain its

Project On Retail Banking

7281 words - 30 pages , India and China, mentioned Indian demographic advantage as an important positive factor for India. 3. Technological factors played a major role. Convenience banking in the form of debit cards, internet and phone-banking, anywhere and anytime banking has attracted many new customers into the banking field. Technological innovations relating to increasing use of credit / debit cards, ATMs, direct debits and phone banking has contributed to the

Atul

2517 words - 11 pages Administration of St. Xaviers College Mapusa, Goa. The project research has been completed in Atul Ltd. At Atul, Gujarat from 14th May 2013 to 27th June 2013. Project was mainly based on Comparison between Dyestuff industries present Scenario and future scope in India and China and in India at Atul ltd forecasting the scope for the growth of the company. I have come up analysis that compares industries in India and China and the way Atul ltd is operating

Attrition Analysis

3838 words - 16 pages domestic entrepreneurs and international players, opportunities to invest and grow. The GDP of India as per The World Bank data (2014-15) is 5.7%, to which the Indian Manufacturing Sector contributes to an extent of 14%. Deloitte’s global index 2013, for 83 nations has ranked India as the 4th most competitive nation, behind China, The US and Germany. The main industries in the Indian Manufacturing sector are: 1. Textile Industries 2. Chemical

Arcadia Group In India

1826 words - 8 pages when doing international B2B collaboration have a good relationship who help each other. Conclusion India still has many potential to grow Indian economic, India look like a potential market in the world, promote more retailer ready entry Indian market. In 2050, India may be a third retail market in the world after United stated and China (Mann and Byun, 2011). To sum up, the majority of Indian are middle-class and working women nowadays

The Fast Food Industry

5324 words - 22 pages plan around franchise options. Therefore, initially the only cost to enter the market is the starting capital required to open a restaurant. (1) On the one hand, the entry barriers are low. Most fast food restaurants are small size without any advantage. There is no brand advantage for the lack of famous brand, and the capital requirement is low. The resource is more, and the existing fast food restaurant cannot form barriers for the resources

Similar Documents

China And India: World's Next Superpowers?

1144 words - 5 pages ........................................................................................ 4 B. On the world now ........................................................................ 4 C. On the world in the future .......................................................... 5 IV. Conclusion ....................................................................................... 5 2 I. Synopsis Will China and India be the world’s next

How Can African Countries Harness The New Relationships With China And India?

1175 words - 5 pages in turn generates greater revenues for resource rich African countries, but again this is short-term and based on a highly volatile international commodities market, as African countries experienced in the 1970s on the back of the oil shocks. In macro-economic terms, Africa has thus benefited from the rising demand for exports to China and India. However, we know that revenues from extractive industries do not always translate into development

Co Relation Of Growth And Inflation In India & China

3147 words - 13 pages would attempt to examine the relationship between inflation and growth rate in the two rapidly emerging economies of India and China. Both the countries with huge population have emerged as rapidly growing economies. China embarked upon the western model of growth and market economy within the existing communist political framework (which they succinctly termed as market socialism) since 1979. India followed the similar path of liberalisation in

Research On The Links Between Religious Beliefs And Medical Decisions In Jaffna, Sri Lanka

760 words - 4 pages Research on the links between religious beliefs and medical decisions in Jaffna, Sri Lanka.   Theoretically This research project aims to explore the ways in which religious beliefs affect the medical-decision making of Sri Lankans in Jaffna. Due to the medically pluralistic environment of Jaffna, many citizens employ complex combinations of both biomedical and spiritual healing modalities. Many Sri Lankans have adopted informal guidelines