Page 41 - 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
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