Sara Kilbinger (www.wsj.com - subscription required) recently interviewed GE Real Estate CEO Michael E. Pralle (NYSE: GE) on GE's strategy to expand its real estate investments in India, Brazil, and the re-emerging market in Japan. GE Real Estate manages over $71 billion in assets. In 2006 the company invested almost $20 billion in North America, $5 billion in Asia and $5 billion in Europe. Pralle is particularly bullish on commercial real estate in Central Europe, with its rising middle class, and on Japan, where he expects to invest $3 billion in 2007 alone.
Pralle is heavily involved in real estate ventures in India, where GE purchased 2 IT parks in Bangalore and Hyderabad, and is looking to add similar investments. In China and Brazil, GE Real Estate has taken a much more cautious approach. GE is looking for suitable local partners to develop new and existing industrial properties and office complexes. Pralle expects to invest $150 million each in these two countries in 2007. Depending on the outcomes of initial investments in Brazil, Pralle is also looking at Argentina and Chile.
GE Real Estate is not interested in investing in commercial properties in Russia because of a lack of transparency in government policies. Nor is GE Real Estate presently interested in Africa or the Middle East. Pralle left the door open about potential investments in South Africa.
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