The piecemeal response to the pandemic and patchy nature of recovery in different countries has made a powerful case for property investors to look internationally and devote capital to overseas property. So, how much of a portfolio should an investor allocate to real estate beyond their home base? And how best to go about it?
From the Current Issue
The scale and speed of the pandemic’s impact on global supply chains eclipsed anything that had been seen before. COVID-19 brought the entire global value chain to a shuddering halt. Above all, the unprecedented scope of supply-chain disruption has revealed the fundamental fragility of the global just-in-time model that has evolved over the past decade.
As the black swan of the COVID-19 pandemic began flapping its unwelcome wings in early 2020, it started to dawn on the hotel sector globally that it was likely to be one of the hardest-hit industries of all.
Non-domestic investors contemplating the US real estate market will find a very large and diverse opportunity set, with multiple ways of gaining access. Both domestic and international investors should focus on structures that maximise control while minimising fees and costs. This is not always easy but should pay off in the long term.
There’s a huge difference — qualitatively and in terms of results — between time engaged with small networks and time engaged with larger networks. So, be careful how you spend your time, with whom and where.
Not only do investors want to know how high interest rates will rise — given the denominator effect on capital flows into real estate and capital market liquidity as debt-backed buyers retreat — but the more important question for real assets investors is, “Where will interest rates, and inflation, settle once we’re through this economic and capital market correction?”
The fourth quarter fundraising volume of US$47.6 billion just surpassed the totals of the second quarter and third quarter figures combined (US$46.1 billion), and it ranks as the second-highest Q4 total behind Q4 2021’s record US$67.01 billion.
Gaw Capital Partners has formed a joint venture platform with A3 Capital to invest into greenfield and underperforming data centre assets across key markets in Southeast Asia.