Page 40 - 10 Booming Real Estate & Logistics Companies in APAC 2022
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SNAPSOT
APAC LOGISTICS: GREATER CHINA: MAINLAND While the market has already been
in the upcycle for close to a decade
SEES CONTINUED STRONG
and rental growth is plateauing,
DEMAND FOR PLATFORM DEALS
AN OVERVIEW With limited availability of stabilised some owners still anticipate short-
to medium-term yield compression.
or income generating assets available
for sale, mainland China saw a wave
of platform level investment over the JAPAN: NEW PLAYERS ENTER
Since the onset of the global The strong occupier market has piqued course of 2021. Many institutional DEVELOPMENT MARKET
pandemic, Asia Pacific logistics has investor interest in logistics assets, buyers are eyeing opportunities in Transaction volume in Japan’s logis-
performed in good health, owing to with respondents to CBRE’s 2022 development platforms, which offer tics sector increased by 78% y-o-y
increased e-commerce penetration, Asia Pacific Investor Intentions survey higher returns than stabilised plat- to JPY 428.0 billion in Q4 2021, the
the development of Omni channel naming logistics the most popular forms. Yields for stabilised platforms largest figure for the October-De-
retail, and a push to improve supply sector for the second year in a row. are now close to those for core retail cember quarter since surveys began
chain resilience, all of which have trans- and have narrowed further with those in 2005, making it the second largest
lated into significant leasing demand. for core office properties. Property sector in terms of investment behind
funds have also been a major source offices. While purchasing in recent
INVESTMENT FLOW
of investment, with around half of quarters has been dominated by
all fund-raising concluded in 2021 J-REITs, new players including over-
raised by logistics-focused funds. seas investors have been entering
H
Elsewhere in Greater China, logis- the market in greater numbers.
tics deals accounted for just under Major developers have historically
40% of investment volume in Hong dominated logistics development
Kong SAR in 2021. Most transac- in Japan, with their strategy being
tions have involved redevelopment to construct warehouses and then
and conversion projects, particularly transfer them to J-REITs, meaning
in the data centre, self-storage, and that deals between third parties
cold storage sub-segments, with have been few and far between.
the lack of stock for sale continuing
to impede any platform deals. More recently, investors and devel-
opers have begun to pursue logis-
With so much capital deployed into tics development. As it remains
the sector, yields have been driven challenging to obtain land for devel-
down significantly in recent years opment, any plots or properties
Source: 2022 Asia Pacific Investor Intentions Survey, CBRE Research, January 2022 and are now converging with those that are transacted between third
for the office and retail sectors. parties typically fetch high prices.
|40 thecorporatereview.com | India | Vol. 3 | Issue 5| July 2022 |41
