Canadian corporate investment in the global market shook off three years of stagnation to hit a record high in 2014.
According to Statistics Canada data, net direct investment abroad, buoyed by outward investment flow and increased revaluation from a weaker Canadian dollar, jumped by 8.8% to hit $96.5 billion, the largest total on record.
Assets in the United States were the main target for the increase. They accounted for two-thirds of the overall gain in Canadian direct investment abroad in 2014.
Commercial real estate was among the favoured assets for Canadian companies. According to a Jones Lang LaSalle (JLL) fourth-quarter 2014 global capital flow report, Canadian investors provided the single biggest source of foreign investment capital into multifamily real estate in major U.S. cities.
In the biggest U.S. office real estate deal of 2015’s first quarter, Canada-based Ivanhoé Cambridge and Callahan Capital Partners acquired 1095 Avenue of the Americas from Blackstone for US$2.2 billion.
Europe was the second most popular destination for Canadian investors. StatsCan numbers show direct investment there was up 0.9% to $192 billion, led by stronger flows of Canadian investment dollars into Switzerland and the United Kingdom.
Meanwhile, direct foreign investment in Canada was led by the United States, which increased its stake in Canadian assets by $19.5 billion to $361.4 billion. That accounts for almost half of the $732 billion of foreign investment in Canada in 2014.
Asian and Oceania countries increased their investment in Canada to $85.9 billion, a rise of $7.9 billion. StatsCan said China accounted for close to 60% of the growth.
