Vietnam has often been a conundrum for institutional real estate investors: the short-term macro indicators (currency, interest rate, inflation) are too volatile, markets are underdeveloped and relatively illiquid, and qualified operators on the ground are few and far between. Countering these challenges, promises of opportunity beckon. Few would argue Vietnam’s mid- to long-term prospects are anything less than bright: a continued strong growth rate benefits from factors such as a hungry, aspiring workforce; a young population; relatively low-cost workforce; rich natural resources; a rapidly growing, and urbanizing, middle class; and a history of resilience among the population.

Graeme Newell is professor of real estate investment at the University of Western Sydney in Australia.  He also is currently executive director of the International Real Estate Society.  Newell has strong links to the real estate industry, both in Australia and overseas.  He recently prepared a second major report for the Asia Pacific Real Estate Association (APREA), The Benefits of n Allocation to Asian Real Estate for Institutional Investors, and presented the findings in October 2011 at VIP – Asia Investor Roundtable, a conference jointly sponsored by Institutional Real Estate, Inc. and APREA.  Newell spoke recently with Dr. Jennifer Molloy, editor of The Letter – Asia Pacific, to discuss the findings.

Tokyo-based Diamond Realty Management (DREAM), a wholly owned subsidiary of Mitsubishi Corp., has closed a ¥10.2 billion private mezzanine debt fund.

Singapore-listed Perennial China Retail Trust has agreed to acquire a 50 percent stake in a shopping mall in Chengdu, China, for S$455 million (US$357.7 million) from Shanghai Summit Group (Summit Group), which will continue to hold the remaining 50 percent interest in Chengdu Longemont Mall.