VIDEO: Expect increase in China’s RE secondaries volumes

Marc Weiss, partner at Partners Group said on the sidelines of the PERE Asia Summit held in Hong Kong last week that the distressed situation and looming uncertainty in China are going to be big drivers of secondary real estate transactions increasing in China.  

China is among the Asian economies that will see an increase in secondaries real estate volumes, given the large amount of opportunities in funds and capital that is being raised in the country, Marc Weiss, partner at Partners Group told PERE on the sidelines of the PERE Asia Summit held in Hong Kong in early March.

“Distress and uncertainty are big drivers of why people might want to sell. Those taken together are a big part of why you would expect to see secondary volumes coming out of the country,” said Weiss.

On the kind of institutional investors who would be particularly interested in committing capital to the real estate secondaries market, he said sovereign wealth funds, who are “trying to double down the exposure they already have, and are tactically trying to acquire additional investments where they see returns being accrued” would be active.

He also added, however, that a lack of transparency in regions including China and India could also dissuade investor demand for such transactions.

“India is a market where there is very little transparency. There are a lot of assets, where you don’t really know if they are easily saleable due to fractional ownership and control,” he said.