Growing transparency: Transparency is clearly the way forward for Asia Pacific institutional real estate
As capital markets mature and expand globally, institutional investors of all stripes are requiring increasing levels of clarity and transparency before allocating capital. Money managers invariably have fiduciary obligations to investors, and must show they have practiced due diligence before allocating funds. This trend has come to Asia Pacific real estate, where sellers of institutional-scale property have found potential buyers want increasing amounts of specific information before green-lighting investments.
The institutional-investor migration toward transparency should pay rewards; buyers who are comfortable with the assets are more willing to part with funds. But enhanced transparency also brings greater complexity to managing properties and to preparing real estate for sale.
“Boundaries and requirements for transparency in institutional property have continually been pushed forward in order to meet ever-changing demands,” says Dr Megan Walters, head of res