LaSalle Investment Management has identified a number of new opportunities in the Asia-Pacific core market for investors seeking steady returns.
LaSalle Investment Management has identified a number of new opportunities in the Asia-Pacific core market for investors seeking steady returns.
The Asia-Pacific institutional real estate market has grown from around $980 mln (€ 753 mln) to $2.3 bn (€1.8 bn) over the past five years, with sizeable expansion of institutional-grade stock in China, Hong Kong, Singapore, Korea, Japan and Australia.
This 135% growth in overall stock levels, says LaSalle, has brought with it a number of opportunities for institutional investors who are willing to accept reduced capital returns in exchange for a dependable income stream.
Among the core opportunities in the region identified by the LaSalle bulletin are hotels; logistics, retail and high-grade office stock in Australia; Grade B office, logistics and residential in Japan; and logistics in Singapore.
LaSalle's research head Paul Guest commented: ‘The distribution of investable real estate stock is shifting towards Asia, making it a convincing case for why investors need to be in the region.’
‘We hold the view that economic and financial conditions support the demand for core investing, with target returns in the vicinity of 6% to 10%.'
