Morrison & Foerster’s managing partner of the Singapore office, Shirin Tang, is quoted in the article, “Office, retail, industrial properties underpin Asia-Pacific investment bonanza” published by The Business Times on December 27, 2021.
With the recent statistical figures released by the Real Capital Analyst (RCA) on the overall increase in income-producing properties this January to November within the APAC region, Shirin shares her sentiment that “as we move into 2022, competition for real estate deals remains stiff and bids high across the Asia-Pacific,” adding that “2021 saw robust fundraising activity with a large number of blockbuster funds reaching final close in APAC.”
She continues, “As these funds begin to close, shoring up the asset class with ever more investment firepower, and with credit markets expected to remain relatively accommodative, we see transaction volumes remain strong.”
In terms of where real estate capital and investments in Asia-Pacific have focused over the last year, Shirin indicated that this rising capital flows from institutional investors and asset owners have targeted properties in established gateway cities such as Singapore and those in Australia, Japan, and South Korea, especially when it comes to recovering Grade A office and retail property investments. She said, “The appeal of safe-haven markets amid persistent economic uncertainty is a big draw. In addition, despite the slow easing of travel restrictions and virtual due diligence becoming part of the new normal, cross-border purchasing activity has continued to support intra-regional deal activity.”
The Business Times also shares that Morrison & Foerster expects asset managers and investors to be increasingly focused on identifying and driving value in target assets. In response, Shirin added that “value can definitely still be found, but asset owners in Asia-Pacific are paying closer attention to the fundamentals and establishing value-enhancing plans early.” She also shared that in support of this effort to unlock value, dealmakers are getting more creative and sophisticated with deal structures to secure attractive entry points.
In concluding, Shirin conveys her observation of the rising demand for investments in property managers and operators. She says, “For investors, it’s an opportunity to secure valuable access to a pipeline of deals. For experienced asset managers, such partnerships with local operators offer an opportunity to venture into new geographies while mitigating risks.”
