Asia’s listed sector holds the key

Delegates at an Asian property conference said their intention is to increase allocations to property with a bias towards listed companies.

Asia’s listed property sector has become a key investment area for LPs seeking improved liquidity, according to a recent Asian property conference.

The Asian Public Real Estate Association (APREA) said most funds intended to increase their allocation to property with a “bias” towards listed companies because of their “liquidity” and “valuation considerations.”

At the annual property forum held last month, APREA polled more than 175 senior executives from across 19 countries for their views on the market.

Those polled said Asian REITs had suffered from a “wave of unprecedented changes” in the global financial system leading to deleveraging across the sector and pressure on Asia Reits.

Delegates also agreed that China remained a market with “liquidity still existing in the system” and that Shariah compliant or Islamic financing has become a “big source of funding and can be applied to real estate investments, opening up or expanding opportunities not only for Middle East based investors bit also others.”