OVERSEAS investors continue to inspect potential direct property purchases despite the high Australian dollar. And there are rich pickings, with more than $15 billion of prime office and retail sites still up for sale.

Although some assets have been withdrawn and others are being bundled into new trusts for possible flotation, the overseas players are still keen to buy.

It is understood a delegation of Chinese investors is already in Australia and delegates from Germany, the Middle East and Norway are expected in coming weeks.

Although the sale of the $700 million Aurora Place is under way, trophy assets such as this are catching attention overseas.

For example, Valad’s Top Ryde shopping centre, which is under construction at North Ryde, is said to be of interest to a Canadian pension fund and the large Asian arm of LaSalle Investments.

LaSalle is no stranger to Australia; it has a significant partnership in Westfield’s newly refurbished Doncaster Shoppingtown in Melbourne’s north.

The Chinese Investment Corp is also keen to expand its commercial property exposure in Australia. It has a stake in the Goodman Group’s Asian fund and is happy to take up other cornerstone investments.

According to investment managers, the attraction of Australia is the strength of the economy and the prospects of coming through the financial crisis unscathed.

The chief investment officer at ING Investment Management, James Wright, said: ”The domestic and global investment environment has improved materially over 2009, driven by the Federal Government’s stimulus support, corporate and personal deleveraging, the move towards normalisation of credit markets and the continued strength of the Australian financial system.”

Source: Brisbane Times