LISTEN NOW: Creative approach to deploying $39bn in APAC oppo capital

Henry Chin, head of Asia-Pacific research at CBRE, talks about how opportunistic managers will need to move beyond development deals and look at other ways to deploy their funds’ capital before the investment period expires.

Close to 70 percent of the total $53 billion in capital that is available to be deployed from all the Asia-Pacific-focused closed-ended private real estate funds over the next three years is for opportunistic strategies, according to the latest research published by CBRE this week (see charts). This research is based on an analysis of the Asia-Pacific-focused closed-end private real estate funds that attracted capital between 2014 and the third quarter of 2017.

Henry Chin on OpCo/PropCo trend in Asia

Henry Chin on REIT privatizations

However, at a time when managers are finding it challenging to generate opportunistic returns by investing in development projects or other conventional opportunistic strategies, coupled with a lack of quality stock, they will need to devise more creative strategies if they want to fully deploy their funds within targeted investment periods.

In this two-minute audio, Henry Chin, head of research for Asia-Pacific at property consultancy CBRE explains why one such strategy, the operating company-property company, or OpCo-PropCo, transaction will start gaining traction in Asia. Chin also goes on to talk about the privatization of REITs, another which could gain traction for opportunistic investors in the region in 2018.