Asia Pacific REITs are leading the charge in sustainability, driving the decarbonization of the region’s real estate. With over 200 REITs and a market cap surpassing $250 billion, they are setting new standards for green assets and aligning with net-zero goals.
However, climate risks and regulatory pressures loom large, making it imperative for REITs to innovate and collaborate to safeguard their assets and seize the massive opportunity in sustainable growth. Learn how APAC REITs are navigating these challenges and pioneering a resilient, green future.
Sigrid Zialcita
CEO APREA
Sigrid is the Chief Executive Officer of Asia Pacific Real Assets Association (APREA). Based in Singapore, she is responsible for overseeing the strategic direction, initiatives and operations of the association across Asia Pacific. Under her leadership, APREA repositioned to an industry trade group focusing on real estate and infrastructure.
Sigrid joined APREA’s executive team in January 2019.
Prior to APREA, she served as Managing Director of Asia Pacific Research and Advisory Services of Cushman & Wakefield (C&W) from 2010 through 2018, where she was responsible for research, thought leadership, strategy formulation and client management. Before relocating to Singapore, she was based in Washington, D.C. and led C&W’s U.S. research group in the Mid-Atlantic region, overseeing all aspects of market research activities in the Washington, DC; Virginia; Suburban Maryland, Baltimore; and Philadelphia areas. Prior to joining C&W, Sigrid served as a Senior Economist for the National Association of Realtors (NAR). In that position, she developed NAR’s office, warehouse, retail, multi-family housing, and international research programs.
A recognized expert in global economic, public policy and real estate issues, Sigrid is a frequent speaker at industry events. Her commentary on commercial and residential real estate markets is also regularly featured in a wide array of global publications, including the Wall Street Journal, Financial Times, Bloomberg, New York Times and Reuters. Additionally, she has made several television appearances on financial networks and radio such as CNBC, Bloomberg, CNN, National Public Radio and Channel News Asia.
Sigrid holds a Master of Business Administration from Cornell University’s Johnson Graduate School of Management and a Master’s degree in Economics from Pennsylvania State University. She is a member of several civic groups including the Rotary Club of Raffles City in Singapore, where she has served in various leadership positions, and serves in the Executive Committee of the Crohn’s & Colitis Society of Singapore.
David Fogarty
Head of ESG Consulting & Sustainability Services Paia FROM CBRE, APAC
David Fogarty is the Head of ESG Consulting & Sustainability Services, Paia FROM CBRE, APAC.
He has previously the roles of Executive Managing Director for Property Management in the United Kingdom, Managing Director, Property & Asset Management Singapore and Southeast Asia, and Regional Director, Asset Services, Pacific (Australia and New Zealand).
David is a passionate advocate for creating an environment where people thrive, building communities and connections, integrating technology, sustainability, and people to help shape the future of the workplace and real estate.
With over twenty-five (25) years’ experience adding value in the industry across a range of commercial, retail, residential, mixed use, hospitality, and industrial property, David has successfully led Asset, Property and Sustainability businesses, building effective teams, driving strong growth, performance, and profitability.
Stay ahead of the curve with APREA’s exclusive monthly update tracking the performance of China REITs.
APREA C-REITs Roundup provides the latest info and developments in C-REITs. Available for APREA members only, this important resource is your key to navigating the landscape of C-REITs.
Blueprint to Brilliance: A Forward-Looking View of Investment Opportunities in India
India is experiencing a significant transformation as the world’s fastest-growing major economy, with substantial investments flowing into asset classes such as REITs, InvITs, warehousing, and data centers. This growth is underpinned by the resilience of the real asset sector, supported by domestic capital and enhanced infrastructure, positioning India as a prime destination for global investors. Strategic investment approaches and effective risk management are crucial to sustaining this upward trajectory.
Investing in Asia Pacific Real Estate: Structural vs Cyclical Strategies (CBRE)
With the Asia Pacific commercial real estate market sitting at the top of the interest rate hike cycle (excl. Japan) and repricing for assets beginning to materialise, conditions are ripe for certain investment opportunities.
Now is an opportune moment for investors to acquire discounted assets in specific markets and sectors that are expected to see both pricing and performance rebound over the medium-term.
This report identifies opportunities for buyers and sellers seeking to capitalise on changing market dynamics, and explores the cyclical and structural investment strategies that can be deployed across the Office, Industrial & Logistics, Retail, Living, Hotel and Data Centre sectors, as well as through credit strategies.
Continued soft inflation and employment data in the US has changed market leadership as expectations for several Federal Reserve Fed Fund rate cuts has led to a strong rotation from large cap tech into lagging sectors including REITs which are seen as beneficiaries of lower rates. The FTSE EPRA Nareit Asia USD Dev Net TR rose 6.34% in July. Our active markets:
Japan, +9.5%: BoJ Governor Ueda raised short term rates, press conference was hawkish and confusing. Created a lot of volatility to this day. JREITs, have performed much better relatively and are up in USD terms since the move. Bank stocks, beneficiaries of higher rates moved up initially after Ueda’s comments, but then lost almost 25% in two days as rate expectations have changed with global macro conditions continuing to moderate
Australia, +3.8%: The RBA announced no change to policy rate in its August 6 meeting and pushed back on expectations for a near-term OCR cut given persistently high inflation caused by high labour costs. We expect Goodman Group to show solid results including decent guidance due to strong contribution from its growing Data Center developments. We will probably increase our underweight should earnings be well received next week
Hong Kong, +1.5%: Expectations going into results are extremely low especially after Hang Lung Properties’ DPS cut by 1/3rd due to weak sales particularly in China. We attended Link REIT’s HK and Shenzhen asset tour (separate note) and noticed weak attendance from buyside firms as interest in the market is at extremely low levels despite cheap valuations
Singapore, +6.2%: SREIT results were in line with expectations and dividend growth has been stunted by higher interest costs. Given the outlook for rates globally, rates in Singapore will follow as the MAS does not set interest rate policy directly.
Bottom line: REITs have been trading up since the US CPI print on July 11 on the back of a reset in rates expectations and decent earnings.
Conservation shophouses have emerged as one of the top alternative real estate asset class over the past decade in Singapore. Besides their finite supply and vintage charm, they are among the few asset classes in Singapore that allow foreigners and companies to own boutique buildings at a palatable quantum.
Transaction volumes hit a peak of $1.9 bn in 2021 before declining on high financing costs, record price points and most recently, overhang from the $3 bn money laundering case. CBRE Research believes the underlying fundamentals for shophouses remain solid, notwithstanding certain challenges in the near term.
This report looks at the past, present and future for conservation shophouses, and recommends actionable strategies for investors.
APAC Capital Markets Outlook – Midyear 2024 Update (Cushman & Wakefield)
Recent rapid interest rate hikes have tempered economic expansion, yet growth remains resilient throughout the region.
As a result of interest rate hikes, commercial real estate investment in Asia Pacific has declined 40%, though recent data has shown stabilisation and some sectors moving off from their investment low-point.
LOOKING FORWARD
Anticipate upcoming interest rate cuts, although their pace and scale will vary across different markets, which will support accelerating investment transaction activity.
There is significant capital waiting to be deployed. Accordingly, opportunities exist along the risk curve and for different investment styles for astute investors. Secular megatrends will drive growth in Alternative and “through the cycle” asset classes.
While we advise investors to be mindful of government and household debt levels and keep an eye on any significant unwinding of labour markets, history tells us that the time to act is now.
2024 Asia Pacific Real Estate Market Outlook Mid-Year Review (CBRE)
CBRE’s 2024 Asia Pacific Real Estate Market Outlook Mid-Year Review examines the predictions we made at the beginning of 2024, and reveals our outlook for the rest of the year.
Our original forecasts from January were largely correct, although the prolonging of expected interest rate cuts has delayed a recovery in investment activity. CBRE has therefore slightly revised down its full-year investment volume forecast to an increase of 0% to 3%.
CBRE retains its forecasted full-year gross office leasing volume at 0 to 5% growth on the back of solid upgrade demand and flight to green relocation, while retail expansionary demand remains resilient, as expected. Conversely, logistics demand normalised faster than expected as occupiers retain a preference for renewals over relocations due to high rents and fit-out costs.
This report explores the key trends and forecasts that will shape Asia Pacific’s commercial real estate market for the rest of 2024 and beyond.
Asia-Pacific Horizon: Look Beyond the Norm (Knight Frank)
Knight Frank’s Asia-Pacific Horizon: Look Beyond the Norm report uncovers emerging investment momentum and identifies top investment destinations, with private capital playing a crucial role.
Key highlights:
Major trends driving real estate investments in APAC
Projected impact of rate cuts on investments
Deal flows in APAC signal recovery in H224
2024 is a great vintage for offices in Australia and Hong Kong
Spotlight on Australia, Japan, Singapore, South Korea and Hong Kong SAR
A return to inflation fires up Japanese real estate
Kemmu Kawai joined Longevity Partners Japan in September 2022 as the Country Director. Based in Tokyo, he oversees all operations and activities in Japan, the Asia-Pacific region and beyond. He brings him more than 16 years of experience in finance where he specialised in real estate and credit investments. Before joining Longevity Partners, he served as a Portfolio Manager at Norinchukin Bank and as Investment Manager at Center Point Development.
