Proximity to the Asia Pacific and a supportive regulatory and political environment is luring investors to the sector, with institutions claiming there are sustainability benefits too.
Hugo Cox
Some investors are taking advantage of a rush for the exits by real estate funds and REITs.
Global institutional investors, led by Canadian pension funds, are piling into the sector despite its disappointing returns in the last year.
Buildings performing better on sustainability may not be more attractive to institutional investors without regulatory requirements or demonstrable financial benefits.
Solar, wind, and other renewables are the main beneficiaries as Asian institutional investors shift from lagging property bets to green alternatives.
Growing investor appetite for distressed investments is being matched by a wider range of opportunities, even as the region's banks adopt a more conservative lending approach.
Increasing competition for deals, and the challenges posed by high interest rates, could endanger returns for some in the sector.
Growing demand for the burgeoning asset class is being matched by a widening opportunity set in the region.
Investors have to widen their search beyond the region’s established markets to find suitable opportunities.
As the sector grows, family offices are flocking to returns that can reach 12%, according to industry experts.
Concerns about private markets have spread to public markets such as equities, which have seen steep recent falls. Institutions and multi-family offices are turning cautious.
The world's largest asset owner sustainable investment platform hopes the move will better connect information about investee company revenues with real world outcomes.