Real Estate Asset Management Market Trends
Asia
Market Trends
➟ Rising Rate of Local Investors Adapting to Real Estate Asset Management: In the Asian region, large institutional investors are pushing hard for the limited supply of prime properties in first-tier cities. As a result, other local investors, including an increasing number of developers are branching out into asset management as development margins shrink, and are looking to projects in outlying areas of big cities.
➟ Demand for Commercial conservation shophouse in Singapore: Commercial conservation shophouse space is witnessing a high level of activity in Singapore with activity volume increasing by almost 30%. Several Asset Management firms are choosing these spaces due to their longer-term capital appreciation because of their restricted supply, with prices reported to be approximately 59.5% higher in 2021 in comparison to 2020.
➟ A growing number of local and international Asset Managers – The Asian market has allowed both local players and an increasing number of international asset managers who have established local presences in Asian countries (China, India, Singapore, Hong Kong, and so on)to foster connections to alternative local investment opportunities. These approaches are projected to continue expanding driven by diverse economies, creative startups, and new alternative projects such as infrastructure and real estate development as well as the loosening of local rules on foreign investments.
Activities of Big Players in the Asian Region
➟ In 2022, ESR Cayman Limited, one of Asia’s leading real estate asset management companies powered by the New Economy, completed its $5.2 billion acquisition of ARA Asset Management, including its subsidiary LOGOS. At the 2021 PERE Global Awards, the company’s acquisition of ARA Asset Management was named the “Deal of the Year: Asia.
➟ In 2020, ASCENT Fund Services, a Singapore-based Asset Management firm, partnered with Camelot Trust Pte Ltd, a fund registration company to provide Trust Solutions such as Trust Formation, Trust Administration, Real Estate Investment Funds (REITS), and other Trust Services to Asset Management firms in the region.
Australia
Market Trends
➟ Growing interest in A-REIT: Australian Real Estate Investment Trusts (A-REIT) have drawn interest from both domestic and international investors due to their competitive, risk-adjusted returns and relatively high income. The surge in asset management earnings by A-REIT is expected to continue. In 2021, Real Asset Management (RAM) listed Essential Services Property Fund, its first Real Estate Investment Trust, on the Australian Securities Exchange. The fund is composed of a geographically diverse portfolio of pure medical and essential retail assets, which are backed by a high-quality essential services tenant profile that includes hospital operators and prominent national supermarkets.
➟ Significant Players in Australia: According to the Joint Fund Manager Survey conducted by industry groups ANREV, INREV, and NCREIF, total Real Estate Assets Under Management (AUM) of Australian asset managers fell 2.7% in 2020 to $307.4 billion. Goodman Group ranked the highest among Australian fund managers by total real estate AUM globally and non-listed real estate AUM, totaling $51.8 billion in 2020, and Charter Hall ranked first in the Asia Pacific, maintaining double-digit growth in total real estate AUM for six consecutive years.
Activities of Big Players in Australia
➟ In 2022, APG and Ivanhoé Cambridge announced an investment in Australia-based Taronga Ventures’ built environment technology fund RealTech Ventures. Ivanhoé Cambridge Inc., a global real estate institutional investor, aims to strengthen its innovation strategy and long-term commitment to this strategic investment while diversifying its portfolio in the Asia Pacific. The investment will offer Ivanhoé Cambridge a first-mover advantage in asset management and investments in the Asia Pacific.
➟ In 2020, Oxford Properties Group, a significant Real Estate Investor, Developer, and Manager acquired a 50% stake in the Australia-based Investa Asset Management Platform from MIRA Real Estate, a subsidiary of Macquarie Group. The acquisition strengthens Oxford’s partnership with Investa and expands its property and asset management capabilities in Australia.
Data Sources: PWC, Deloitte, Withersworldwide, ASX, Ramgroup, and many more
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