Events

The private real estate markets of Asia’s emerging markets and Hong Kong face the most uncertainty as the US tapers quantitative easing, delegates heard at the PERE Summit Asia.    

The concluding panel at PERE’s seventh Asia Summit in Hong Kong told delegates the core real estate market in Asia required a widely acknowledged benchmark in order to take a major step to maturation.  

Chinese investors and developers investing overseas also are willing to buy non-traditional real estate for the returns they want, delegates heard at the PERE Summit Asia in Hong Kong.  

LPs still hold the upper hand before a capital commitment is made to a fund, but afterward the LP-GP relationship becomes much more symbiotic, delegates heard at the PERE Summit: Asia in Hong Kong.

Even with $3 trillion in reserves, China’s institutional investors are ‘conservative’ when it comes to investing in private equity real estate, and it could take several years for China’s LPs to get comfortable with real estate investing, delegates heard at the PERE Asia Summit.

The global head of real estate at The Blackstone Group told delegates at PERE’s sixth annual conference how the firm’s competitors have dissipated just as the world’s real estate markets throws up compelling opportunities.

One of the highlight’s of this year’s PERE Forum: Asia in Hong Kong was an onstage interview with Mark Burton, the former chief investment officer of the Abu Dhabi Investment Authority and the Abu Dhabi Investment Council.

LPs see improved security by investing with smaller, real estate-focussed fund managers than with large bulge bracket firms, delegates heard on the second day of PERE’s annual event in Hong Kong.

At the PERE Forum in Hong Kong today, delegates heard how $140bn would be raised for real estate globally in 2011 but that club structures would be regarded as the most capable of vehicles to compete on transactions. Conference polls showed how fund sizes would shrink and opportunistic returns would decrease also.

Events in China’s economy increasingly are rivalling those in the US, according to this year’s roundtable participants. Still, they are more preoccupied with how the investor community at large is eyeing their industry. PERE Magazine December/January 2010/2011 issue.