Asia's growing economies are set to keep encouraging more global investment into the region's commercial real estate – if supply and new investment vehicles can keep up.
Managers should expect more frequent and detailed requirements from asset owners in order to attract capital, delegates heard at AsianInvestor’s Asian Investment Summit in Hong Kong.
What happens in Korea will likely show how much Beijing wants to create a sustainable business or send a clear message about penalising companies for poor capital controls.
Like their Japanese peers, Korean insurers are diversifying into overseas investments and so far they are doing so prudently, according to Fitch Ratings. Challenges remain though.
A more streamlined decision-making process could help Korea’s public pension fund to benefit more from alternatives as it hunts higher and more stable returns.
The German insurer has committed $600 million to manager GLP to launch a strategic partnership in the two countries, as it targets a higher level of investment into the region.