With global student numbers at an all-time high — and rising — the demand for PBSA in every market continues to outpace the supply of available beds. In Australia alone, JLL estimates there is less than one PBSA bed for every 10 students in most Australian cities. As a result, rental growth prospects for the sector are extremely strong.
This past year was the worst on record for Chinese developers and the market for new home sales they serve in China. Now, with signs of bottoming out and the fledgling recovery, investors are looking towards the future and wondering what form the normalised housing market will take.
Going forwards, our conviction is that real estate investors need to adopt a stock picker’s mindset rather than a sector allocation focus. Asset selection is key, as we are clearly seeing a bifurcation of returns within sectors and markets.
Real estate is an important building block for constructing multi-asset portfolios, offering investors meaningful long-term return potential, inflation protection and diversification benefits. REITs, however, are often overlooked by institutional investors.
From its launch in 2020 with an initial batch of nine offerings, the Chinese REIT (C-REIT) sector has since experienced rapid growth that to date has swelled to 27 listings with a total market capitalisation that hovered around US$10 billion at the end of April.
Recognising the importance of ESG considerations, governments and regulators in Asia Pacific have joined the investment industry by implementing legislation and regulatory frameworks to drive ESG disclosures.
Investors should look for on-the-ground partners with significant experience and skills to originate, structure and manage risk in credit markets, according to a virtual roundtable with institutional investors, consultants and investment managers held 10 May by Institutional Real Estate, Inc.
The Indonesia Investment Authority (INA), ESR Group and MC Urban Development Indonesia (MCUDI), a wholly owned subsidiary of Mitsubishi Corp, have formed a strategic partnership to invest in three modern logistics parks in Indonesia developed and managed by ESR.
Scape Australia principals Stephen Gaitanos and Craig Carracher have formed a A$1.5 billion (US$997 million) rent-to-live joint venture in Australia with Dutch investors APG Asset Management and Bouwinvest.