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Finding your niche: Institutional investors must navigate fundamental challenges as investment into niche assets increases
- December 1, 2017: Vol. 9, Number 11

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Finding your niche: Institutional investors must navigate fundamental challenges as investment into niche assets increases

by Mard Naman

Core real estate prices have gone through the roof, yields remain stubbornly low, and competition is tougher than ever for the limited number of assets in most major Asia Pacific markets. To help meet or exceed their actuarial requirements, some investors are moving up the risk curve into secondary cities or fringe areas of major markets. But niche assets offer another option. In the hunt for yield, are niche strategies a viable solution for institutional investors?

The primary niche sectors of student housing, data centres, senior housing and self-storage can indeed provide opportunities for Asia Pacific investors, according to experts. “Trends that we have seen in the US and Europe provide the same drivers for this type of real estate in the Asia Pacific region,” says Tom Errath, director of research and strategy for Harrison Street Real Estate Capital in Chicago. Harrison Street currently manages seven real estate funds targeting student housing, healthcare and storage

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