CBRE recommends expanded use of real estate investment approaches to mitigate risks
In a new research report, CBRE recommends Asia Pacific investors enhance diversification through broader use of real estate investment approaches to offset downside risks stemming from rising interest rates, ongoing property market adjustments and softer fundraising conditions.
CBRE’s “Four Quadrants” framework, encompassing public equity, private equity, public debt and private debt, offers investment options for real estate investors with varied liquidity, control and potential risk-adjusted returns.
Notably, the region has seen strong growth in private real estate funds, with closed-end vehicle assets up 11 percent over the past decade to $65.6 billion awaiting deployment, largely from opportunistic mandates. Public real estate also presents opportunities, with 309 REITs capitalized at $376.5 billion across Asia Pacific.
“Many REITs are now trading at a discount, presenting attractive entry points,” said Henry Chin, global head of investor thought l