Asian investment growing

The influence of Asian investment in commercial properties in Kelowna has grown significantly over the past 18 months.

That's according to a report published by HM Commercial Group, licensed with Macdonald Realty Kelowna.

The report states low rates on return on investment in the Lower Mainland, compounded by the new 15 per cent residential tax for foreign nationals, is driving Asian investment into the Okanagan Valley, specifically Kelowna.

Several transactions involving Asian investment have been concluded over the past several months, including two high-density residential sites in the downtown area.

These include:

  • The former Monaco multi-family site. An urban twin-tower project on 1.04 acres, with approval for 161 hotel units and 128 condos. Sold via court-order for $6.5 million.
  • The former Lucaya project. A 21-storey residential tower adjacent to Prospera Place and Waterfront Park. Was acquired via court-ordered sale and has been rebranded as 1151 Sunset Drive and is in active pre-sales mode.
  • Lake Okanagan Resort. A 125-room, lakefront resort with a nine-hole golf course, tennis courts, marina and restaurant on 300 acres. Sold for more than $10 million.
  • 1601 Bertram Street, a 13,000-square-foot single-storey commercial building downtown (home to K96.3/Country 100.7 radio stations) sold for $2.4 million.

Along with these investments, the report says Asian investors are gobbling up wineries and golf courses across the valley.

Six vineyards and wineries have been brokered by Macdonald Realty Kelowna.

Large parcels of land, 50 acres or more, are also being purchased and because in some cases they include functional businesses, they also meet the criteria of the federal government's immigration and foreign investment policies.

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