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In their latest outlook report for 2021, Colliers estimates that institutional investments in Indian real estate will grow by 14.6% to INR 396 billion (USD 5.5 billion) from INR346 billion (USD4.8 billion) in 2020. For comparison, 2020 had witnessed a drop of 23% from 2019. Colliers believes that institutional investors continue to be bullish on Indian real estate asset classes such as offices, data centers and warehouses and they are looking to deploy their existing dry powder.

“The investment climate in India is very buoyant with global investors’ interest in real assets getting stronger. With global interest rates at historic lows and positive net yields in India, the country has emerged among the preferred destinations for investments in real estate. Further, the resilience of the Indian market is also evident from continued good housing sales performance across various markets, the large institutional investments in commercial office and industrial parks, and the listing of two REITs in the past six months.”

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The Retirement Census is an annual data collection proces conducted amongst Australian retirement village operators. It covers retirement villages governed by state Retirement Villages Acts, rather than other forms of seniors’ living accommodation.
The 2020 Retirement Census covers FY20 (July 2019 June 2020). From March 2020, Australian businesses across all sectors have been significantly impacted by COVID 19 induced government restrictions on operations, employment, and service provision. Participation in the Retirement Census is entirely voluntary, meaning participating operators change year to year. Comparison with previous year figures should be considered with this in mind.

To view the cenus please click below:

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The Development Bureau of the HKSAR Government recently announced a pilot scheme which standardizes land premium calculations for old industrial buildings undergoing redevelopment to other specific uses. We welcome the new scheme as it provides clarity for investment decisions, significant time and cost savings, and encourages more efficient land use to address social needs. Old industrial buildings that sits on Residential or Comprehensive Development Area (CDA) zoning will be most sought after following the implementation of the scheme.

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Return of institutional capital and increasing industrial investment deals

Institutional investors and real estate funds sped up their hunt for industrial assets. In fact, among the aforesaid HKD1.9 billion transactions, all were acquired by funds or institutional investors. In January 2021, Kailong, a fund manager active in Greater China, acquired Hang Fat Industrial Building near Lai Chi Kok station. This property is expected to be redeveloped into a new industrial office building3 . Another pan-Asian fund manager, SilkRoad, also purchased Smile Centre near Fanling station, which is currently leased for logistics use. Meanwhile, Goodman purchased ground floor to fourth floor of Seapower Industrial Centre in Kwun Tong, with cold storage facilities, for HKD570 million (USD 73.5 million).

Looking into 2021, we believe institutional capital and funds will become more active again, given the pent-up acquisition requirements that have piled up over the last 18 months due to the market uncertainties, which now seem to be easing. Compared to the retail and office sector, industrial properties demonstrated a high level of resilience and stability in terms of rents and capital values. Meanwhile, the industrial Revitalisation Scheme 2.0 also presented investors with redevelopment opportunities, and some investors are eyeing the relaxed plot ratio restrictions to improve the return on their investments with higher floor area ratios.

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Rajah & Tann’s Sustainability Practice brings to you the inaugural issue of the Sustainability Updates which shares with you insights distilled from conversations between our Sustainability Partners and experts across sectors and domains on key environmental, social and governance (“ESG”) developments and trends. In this issue, Lee Weilin and Soh Lip San, our Partners with the Sustainability Practice, explore ESG issues in infrastructure projects by speaking with Seth Tan, Executive Director of Infrastructure Asia (“InfraAsia”), on his views on green and sustainable infrastructure and ESG factors for bankable projects in the region.

Rajah & Tann’s Sustainability Practice brings to you the inaugural issue of the Sustainability Updates which shares with you insights distilled from conversations between our Sustainability Partners and experts across sectors and domains on key environmental, social and governance (“ESG”) developments and trends. In this issue, Lee Weilin and Soh Lip San, our Partners with the Sustainability Practice, explore ESG issues in infrastructure projects by speaking with Seth Tan, Executive Director of Infrastructure Asia (“InfraAsia”), on his views on green and sustainable infrastructure and ESG factors for bankable projects in the region.

To read the article in PDF, please click below

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APREA advocates the adoption of ESG and Sustainability Best Practices in the real assets industry. Making sustainable investment decisions is increasingly a part of APREA members’ DNA, and APREA is committed to be at the forefront of that transition to a net-zero world.

APREA advocates the adoption of ESG and Sustainability Best Practices in the real assets industry. Making sustainable investment decisions is increasingly a part of APREA members’ DNA, and APREA is committed to be at the forefront of that transition to a net-zero world.

Recently, APREA together with its ESG and Sustainability Committee conducted an ESG Member Survey to find out real assets companies’ sentiments towards their implementation of ESG.

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Data centers: Critical infrastructure for the global economy: Growth opportunities and operational challenges for fund managers
White paper by SS&C

The world is awash in data. By some estimates, humans generate 2.5 quintillion bytes of data every day. The volume of data in the world reportedly doubles every two years, and an estimated 90% of the world’s existing data was generated just in the past two years.

All that data needs places to live and work, which helps explain the rapid proliferation of data centers globally. At the end of 2019, there were more than 500 “hyperscale” data centers around the world, according to analyst firm Synergy Research, and the number continues to climb. Real estate services firm JLL estimates that, as of mid-2020, there were 63.4 million feet of data center square footage globally, and another 4.3 million under construction.

SS&C helps clients manage their investments by streamlining operations, reducing risk and improving client experiences and increased visibility. With over 500 Real Assets and Private Equity clients globally, representing over $754B in aets under administration, SS&C brings experience in servicing open and closed end real estate, infrastructure, hard asset, debt and hybrid funds, specializing in complex fund administration, middle-office & data services and virtual data room. Our technology enables and secures the flow of information, empowering our customers to work more productively and with complete confidence. We host the largest community of GPs and LPs anywhere with 240,000+ individuals, from 57,000+ endowments, foundations, pensions, consultants and advisors using Intralinks.

To Download the full white paper click below.

DOWNLOAD HERE

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Whatever happens, real estate investors need to be innovative and adaptable, forming investment strategies which align with these structural changes.

COVID-19 has plunged the world into one of the most uncertain periods on record. Gold has hit record highs, equity volatility is elevated and government bond yields around the world remain low. Yet against this backdrop, we predict that real estate investment will remain attractive, thanks to lower volatility than other asset classes, a history of strong returns through longer-term direct investment, and, crucially, its ability to generate income in a world where 60% of bond yields globally are below 1%1 and over $14 trillion have negative yields.

For the service sector, a greater domestic workforce of support staff will offer renewed demand for office space. Localised employment growth in manufacturing, storage and service sectors will also enhance demand for other types of real estate, including residential and healthcare. There will also be indirect opportunities for international real estate investment. As an alternative to increased localisation, cross-border property investment offers global diversification and more options to meet revenue targets.

Nationalism and the advent of trade wars were already on the ascendency, but recent disruptions to business continuity, and overseas travel caused by the pandemic will only accelerate this trend. This has prompted discussions of reshoring (bringing foreign operations back home), onshoring (bringing supply chains within national borders) and nearshoring (bringing operations closer to home). Some types of real estate will thrive as a result. The logistics sector is seeing additional occupational requirements, which have translated into an even stronger investment demand.

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This presents many opportunities for readers of The Wealth Report, whether it’s the investment potential of the global demographic trend towards longer, healthier lives – explored in detail in our Big Interview on page 10 – or the ability of forward-thinking property investors and landlords to capitalise on demand for “healthy” workspaces that boost productivity, which we discuss on page 76. In parallel with this, “giving something back” is increasingly important to the UHNWI community, and on page 86 we profile three fascinating philanthropists whose work benefits a diverse range of causes.

A central pillar of The Wealth Report, the results of our proprietary Wealth Sizing Model – unveiled on page 18 – reveal that wealth continues to be created around the world, especially in Asia’s economic hubs. This growth in private capital is having a noticeable impact on real estate markets globally.

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