ING RE sees big demand for Asian real estate

It is still too early to assess the full impact of the global credit squeeze on European real estate markets, so some investors with a backlog of ready cash to spend are turning to the booming Asian property markets, Hein Brand, CEO of ING Real Estate Finance, said in an interview with PropertyEU TV at MIPIM.

'It's still difficult to say just how much European markets will be affected by the current credit squeeze. Obviously, it has had a deep impact in the US and the UK, and I personally think it will be felt in Continental Europe. But to what extent, I don’t know, as we still have a very healthy demand for top quality real estate,' he said.

A lot depends on how central banks respond to the situation, Brand said, noting that US Federal Reserve’s recent injection of another US$ 200 bn (EUR 130 bn) into the system will be a big help.

'Certainly, despite all the negative news we’re hearing, at ING Real Estate we are very confident about our own future. In fact, very recently we opened a new Asian office in Hong Kong. The timing may seem strange, but we still have to serve our clients,' Brand said. 'And we're seeing a huge appetite among institutional investors for Asian real estate, especially in Japan, Singapore and Hong Kong, so we have to be there.'

ING Real Estate Finance has a loan portfolio of around EUR 2 bn and employs 300 people.