Taking a public stand: more investors are discovering the advantages of listed real estate in their Asia Pacific portfolios
Institutional investors often ask which is better: listed or unlisted real estate securities in Asia Pacific. The short answer is they both have advantages — it is not an either/or proposition.
“It’s about the duration of your investment horizon, that’s the critical question,” says John White, managing director and lead portfolio manager for Heitman’s Asia Pacific real estate securities strategies. “If you can amortise your costs of going direct over a period of 10 to 30 years, then timing the cycle is probably not as important for you as an investor,” he says. However, White says, if investors are getting into the listed market, then having an element of timing and having an understanding of listed valuations relative to their long-term trends and relative to NAV is a more important consideration.
The approach to public real estate varies with the cycle, according to Gek-lang Lee, mana