Not only must the Asian city of the future be functional — with adequate infrastructure and the ability to foster economic growth — but it must be a desirable place to live as it competes for business and residents.
From the Current Issue
What are the main concerns limited partners have about the structure of management fees for Asia Pacific real estate vehicles? What qualifies as “fair” management fees in Asian markets where reliable, meaningful performance benchmarks are not yet available?
London and New York City have seen increasing levels of interest from Asia Pacific investors. In 2012 and the first half of 2013, buyers with Asia Pacific sources of capital spent US$9.6 billion in London and US$3.2 billion in New York City, making up around 10–20 percent of the capital invested each year in direct real estate in those cities.
In recent years, several investment managers have deployed their own versions of the “special sauce” to super-size their assets under management and jump to the top of the global real estate investment manager rankings. Through aggressive growth and M&A strategies, Brookfield Asset Management, CBRE Global Investors and The Blackstone Group have distanced themselves from the rest of the pack, based on a global survey of real estate investment managers conducted by Property Funds Research (PFR) and Institutional Real Estate, Inc (IREI).
In the past several issues, I devoted quite a bit of attention to China, with its slowing economy and real estate bubble in the making. But this month I want to look at Japan.
Limited stock of investable property within Asia could push Asian investors to seek more than US$150 billion in direct and indirect global property investment during the next five years, primarily in gateway cities such as London, New York City and Sydney, according to the latest research from CBRE.
Asia Pacific listed real estate companies experienced a difficult month in August as the markets were negatively impacted by the prospect of globally higher interest rates and the continued sell-off of income-orientated investments.
W hen it is completed in 2014, the Shanghai Tower in Shanghai’s Lujiazui commercial district will stretch 632 metres into the sky, making it the highest skyscraper in China and second highest in the world, behind only Dubai’s Burj Khalifa, an 828-metre office, hotel and residential building.