Asian institutional investors are eyeing opportunities in US real estate after the Fed's recent interest rate pause, and tightening supply in both the residential and industrial property market state-side.
In partnership with Wellington Management
Reits are set to gain from changes brought about by the pandemic, while the yield, diversity and ESG benefits of the asset class are becoming more apparent to Asian insurers.
Boosted by China's Reit market development and a series of regional measures, investors are being encouraged to utilise listed real estate vehicles.
The long-waited infrastructure Reits have finally arrived in China and, while experts see a slow start with hurdles ahead, they say it will later move to a 'big bang'.
Timothy Chan, CIO of Ping An Insurance, shared his 2021 investment focus with AsianInvestor as the insurer aims to take advantage of China's latest five-year plan.
Investment experts were not surprised by chief executive Carrie Lam's policy address focus on China-focused wealth management, but some feel the goal to expand Reits is promising.
Wealthy Asian families have abundant dry powder but are largely holding fire on investments. Property, for instance, is expected to fall further, but Reit opportunities look to be emerging.
South and Southeast Asia's infrastructure needs have prompted the central bank to act as a conduit for investment, partly by overseeing the creation of new investment vehicles.
The largest REITs manager in the US, Cohen & Steers is focused increasingly on Asia as it taps into the region’s growing private wealth sector. In recognition of its global focus and consistently outstanding results, this dynamic company also recently won AsianInvestor’s 2019 Real Estate Investment Trusts (REITs) award.
Poba had no Reit investments last year but has invested close to $80 million so far this year. The Asian Investment Summit also heard how governance issues are rising up the agenda.
China and India may see their first real estate investment trusts launched this year, but some are sceptical about the growth prospects for Asia’s Reit sector.
Long-term investors are increasingly looking at private Reits for diversification purposes and stable yields, delegates at AsianInvestor’s 7th Japan Institutional Investment Forum heard.