Can data centres be considered a niche strategy anymore? If they can, it’s an increasingly-crowded nook for a property play. Large investors such as private equity managers, and even larger investors such as sovereign wealth funds, are admiring the way the sector looks as it matures.
We aim to share our findings, provide perspective and observations on the behaviour of private real estate funds as they approach their legal termination, and raise questions for fund managers and investors to consider when faced with the challenge of weighing fund liquidity decisions with value maximisation strategies.
There has always been a fine line between real estate and infrastructure, but these days, it’s looking increasingly blurred. Ask most commentators about this shifting boundary and the message is broadly the same: There has never been a more important time for investors to scrutinise the two asset classes and weigh their respective benefits at a portfolio level.
Historically, institutional investors looking to invest in core open-end vehicles have had limited opportunities in parts of the Asia Pacific region. With the increasingly-global nature of real estate and the growth of local capital, however, demand has been growing for core investment options in the region. The launch of several new core funds in Asia in recent years is testament to this and could be a sign of changing perceptions in the region.
It’s best to stick to the facts, which reflect growing interest by investors in the Asia Pacific region, evidenced by a broad range of investment activity, albeit against a steady rumble in the background of concerns over Brexit, a certain tweeting president and the tick-tock of the property clock.
Private real estate fundraising numbers are in for second quarter 2018. They’re lower than those for the second quarters of 2016 and 2017, but when added to first quarter 2018, they bring the first-half total well ahead of the past two years.
Asia Pacific property stocks continued to struggle in August as more macro issues — heightened trade-war tensions and a decoupling of once synchronised global growth — gave way to additional issues of emerging market currency weakness and indications of some economic slowdown in China.