By Jim McAlister IV
President & Chief Executive Officer
Seeking higher yields and more stability, major international real estate investors continue to broaden their geographic scope, turning their attention to more than just the traditional U.S. gateway cities. Texas’ major markets have been garnering much of this attention, particularly Houston, the “Energy Capital of the World.”
Although Houston has been attracting international capital for some time now, in 2012, foreign investors contributed an unprecedented $1.4 billion to the city. This is evidence that the U.S. major cities are not the only markets attracting significant international capital. The cities of the “Texas Triangle,” especially Houston, have been providing higher returns as investors have bid returns down to record levels in the other large U.S. cities. The improving U.S. economy and global economics will boost the amount of deals done cross-border as investors are becoming more confident in the economic outlook and target investments outside their home market.
We have benefited directly from this increased foreign capital flowing into Houston as our company recently launched its first fund available to investors outside the country. Rockspring Capital Texas Real Estate Trust will invest in strategic and undervalued land sites in Texas alongside our U.S. investors. We welcome our new international partners and look forward to providing them the same reward potential and investor relations that have been provided to all our investors for more than 40 years.