As investors worldwide accumulate larger pools of capital, they are increasingly bound to seek risk-reducing diversification, not only across asset classes but within asset classes as well. Thus, even while large institutional property investors acquire a mix of property types, they are doing so while seeking a greater geographic spread, and even a global footprint.
Asia Pacific is a net exporter of capital to real estate markets in Europe and North America. With flows of cross-regional capital accelerating, Asian high-net-worth capital is rising fast and competes on the global stage for prime real estate assets.
The ties between how we work, do business and live our lives are becoming more integrated as technological advancements allow us to blur previous divisions between life, work and play. And these innovations are steadily affecting brick-and-mortar investments in some subtle and not-so-subtle ways.
Looking forward, as economies improve, increasingly real estate performance may be driven as much by improving market fundamentals as by strength of capital flows. As a result, variations in both the local pace and timing of strengthening market fundamentals will likely differentiate the growth of real estate values at the asset level and across cities and sectors around the world.
The Urban Land Institute’s Third Annual ULI Asia Pacific Summit 2014 held at the Grand Hyatt Hong Kong was well attended with around 500 registered attendees from Hong Kong and around the world.
APG Asset Management is seeking to capitalise on promising trends supportive of China’s logistics sector by committing up to US$650 million for an approximate 20 percent stake in e-Shang, a Shanghai-based warehouse developer and operator.
GPT Wholesale Office Fund, managed by The GPT Group, is set to complete the full and partial acquisitions of three former Commonwealth Property Office Fund assets in Melbourne for a combined total of A$548.4 million (US$514 million).
Fundraising activity started the year with a bang as 23 funds wrapped up their marketing efforts in the first quarter with an aggregate US$21.7 billion.
The Asia Pacific region kicked its performance into high gear during May, extending its streak to four consecutive months of positive returns, up 5.3 percent in the month.