Echo in hunt for overseas buyers

Mr Day, who founded Echo Capital two years ago, has recently worked with LaSalle Asset Management in Singapore to purchase the Tattersalls building at 179 Elizabeth Street in Sydney.

Of an estimated $13 billion of commercial property assets on the market, cashed-up foreign buyers are said to be circling up to half for potential purchases.

CBRE's research shows that foreign investors accounted for 42 per cent of all commercial purchases exceeding $4 million in the third quarter, and 36 per cent in the year to September 30, well above the typical annual share of 10 to 15 per cent.

Under the plan with CBRE, titled Managed Investment Trust Services Australia, Echo Capital will use its international contacts to provide asset and investment management services.

The alliance was launched following the introduction of federal legislation allowing foreign investors to benefit from a withholding tax rate of 7.5 per cent on both income and capital gains.

Mr Day said that with foreign investment in Australian property continuing to increase, MITSA aimed to provide a "cost-effective and highly efficient means for offshore buyers to acquire and manage Australian assets and benefit from substantial tax savings".

The chief executive of CBRE Australia & New Zealand, Tom Southern, said Australia had been seen for many years as an attractive destination for offshore capital and since the global financial crisis the level of foreign investment has continued to increase.