Shifting landscape: Targets harder to hit for Asian capital seeking core assets
The international competition for core assets has led to a bit of a firefight for Asian investors. Where they could once swoop in and pick off the easy targets, the landscape has changed.
Global competition for core property has grown fiercer as certain Asian pension funds and insurance companies — taking advantage of relaxed regulations that now allow them to look abroad — begin to make portfolio allocations to real estate for yield and stable income generation.
The most notable regulatory changes have been in China and Taiwan. In almost an explosion of capital, insurers are hunting for international assets, in tandem with sovereign wealth funds such as the China Investment Corp and the Korea Investment Corp.
This growing list of Asian institutional investors is seeking to invest globally for diversification purposes, to compensate for a lack of core assets in their home markets, and because they are being allowed to invest beyond fixed income and equity fo