An article authored by Morrison & Foerster Partner, Shirin Tang, has been published in EdgeProp on December 17 – “Asia Pacific Real Estate Deals: More Room to Grow?”
In the article, Shirin explores how despite persistent headwinds facing the real estate industry globally, the Asia Pacific market has continued to prove resilient, particularly within the industrial property sector where transaction interest remains strong. She comments:
“A major contributor to deal flows in Asia Pacific over the last 12 to 18 months has been transactions involving industrial properties, which include assets such as logistics terminals, warehouses and manufacturing facilities. More importantly, perhaps, is that much of the interest surrounding quality assets in this sub-sector is still very robust. We have witnessed this persistently strong interest first‑hand. Transaction advisory requests from around the region involving industrial properties have increased considerably since the onset of the pandemic, with logistics and data center assets in particular standing out.”
She also explores how dealmakers are becoming more creative with their investments, with a renewed focus on value creation through three important trends: increasing interest in emerging markets, innovative deal structures, and a reliance on digital technologies.
She concludes:
“As economies continue to ease restrictions, stabilizing occupancy levels and rental yields in major city centers should only strengthen these trends, adding further impetus to our positive perspective on real estate deal flow. With ample capital resources earmarked to be deployed in the region, real estate fund managers are well-positioned to take full advantage of emerging transactions across the entire risk‑reward spectrum as the market dynamics play out. Going forward, however, establishing a clear value creation strategy for any asset will be key in this increasingly competitive and complex market.”
Read the full article.