Despite the ripple effect of the Eurozone debt crisis, Malaysian investors are still keen on overseas property markets, particularly, the UK, Germany and France, according to Business Times Malaysia.
Companies like Permodalan Nasional Bhd (PNB) and Syarikat Takaful Malaysia are just some of the Malaysian firms that are investing on overseas property markets.
PNB has recently acquired three properties in London - Milton and Shire House, 90 High Holborn and One Exchange Square - while the Syarikat Takaful Malaysia is presently seeking offices or commercial buildings in the capital.
Bindesh P Shah, Co-Founder of Amiri Capital, said the UK, especially London, is an important city among international investors looking to invest in commercial property markets.
This is attributed to the UK's good regulatory and legal infrastructure, along with highly-liquid property sector. These qualities make selling and acquiring properties both reliable and easy.
Aside from that, full repairing and insuring (FRI) leases in the country places the responsibility of up-keeping on the tenant, making property investments easy to manage.
"What it means is when you buy a building, every year, as the investor, as the owner of the building, your responsibility is just to make sure the building's there and collect your lease payment, but the responsibility for maintaining the building both inside and outside rests with the tenant," explained Bindesh.
"Whereas in many other markets, responsibility of the maintenance of the buildings still rests with the owner of the building."
He noted that although the Eurozone debt crisis created uncertainties among international investors, many investors fail to understand the diverse nature of the Eurozone.
"The debt crisis is referred to the European debt crisis when in fact it is a debt crisis of certain countries in Europe and so, not every country is in that crisis situation... Main economies in Europe including Germany and France, have strong fundamentals."
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