Development of Real Estate Funds Management in

Report
Seeing Value in Real Estate
Development of Real Estate Funds
Management in Asia
Private and Confidential
1
Agenda
• Introduction of MGPA
• From MGPA to BlackRock
• Real Estate Funds
– What role does real estate perform in a balanced portfolio
• Real Estate Funds in Asia
–
–
–
–
Real Estate in Asia – How it has developed over time
Capital inflows for Asia Funds 1995 -2013
Asian real estate returns
2013 – 2018 Crystal ball
• Thailand– In an Asian RE Investment context
• The landscape ahead: Where will capital go
• Q&A
Private and Confidential
2
Seeing Value in Real Estate
Introduction of MGPA
Private and Confidential
3
MGPA Overview
• Vertically integrated independently managed, private equity real estate advisory company operating
throughout Asia Pacific and Europe
• Focused on real estate funds management, co-investments and separate account mandates for institutional
investors
•
•
•
•
Offering products across the risk/return spectrum including development
14 year investment and development track record across Asia and Europe1
91 investors from Australia, Europe, Middle East and North America
As of 31 March 2013 MGPA had (i) raised US$8.5 billion of equity commitments and (ii) gross assets under
management of US$12billion
Historical AUM / EUM (US$ Millions)
Capital Commitment by Region
$12,000
10,000
20%
Australia
8,000
41%
6,000
Europe
4,000
Middle East
2,000
30%
0
FY2007
FY2008
FY2009
AUM
1 Including
FY2010
FY2011
FY2012
North America
9%
EUM
Lend Lease Global Properties Fund SICAF.
Private and Confidential
4
Global presence
Extensive local network with 220 staff in 13 offices throughout Asia Pacific and
Europe.
Europe
Copenhagen
Frankfurt
London
Luxembourg
Paris
Warsaw
Asia Pacific
Beijing
Hong Kong
Kuala Lumpur
Shanghai
Singapore
Sydney
Tokyo
Private and Confidential
5
Long term growth, stable platform
1995
APIC Close
US$250 million
1995
1
Does not include the establishment and realisation of co-investment vehicles or separate accounts.
Private and Confidential
6
MGPA at a glance
• Activities
–
–
–
–
–
Eight funds currently under management in Asia and Europe
total cumulative equity commitments of approximately US$7.5 billion
Seven co-investments and joint ventures totalling US$385 million in equity commitments
Three advisory mandates
Invested in 421 properties with exposure to 21 countries
• Since inception – investors
– 91 investors from 16 countries across four regions; Australia, Europe, Middle East and North America
– Over 85% of investors have reinvested with MGPA
• Since inception - realised investments
– 172 properties with total gross asset value at disposition of over US$6.3 billion
– Realized net investment level returns across value add and opportunistic strategies IRR 19%,
1 As
at 31 March 2013 includes all realised investments across LLGP, MGPA AFII, MGPA EFII, MGPA AFIII & MGPA EFIII.
Private and Confidential
7
Global industry recognition
2013
Best Asian PERE fund manager (REIW)
2013
Asian deal of the year (Ginza 4-Chome Tower) (REIW)
2012
Best Asian PERE fund manager (REIW)
2010
Europe deal of the year (acquisition of Aldi Portfolio, Germany)
2009
Asian firm of the year
Asia deal of the year (181 Queen’s Road)
CEE retail awards investor of the year award
(MGPA Europe Fund III, L.P.)
2008
Asian firm of the year
Global fundraiser of the year (Global Fund III)
Asian fundraiser of the year (MGPA Asia Fund III, L.P.)
Asian industry figure of the year (Simon Treacy)
2007
Asian & European firm of the year
Asian industry figure of the year (Jim Quille)
Asia deal of the year (8 Shenton Way)
2006
Asian firm of the year
Private and Confidential
8
Capital raised over past five years
• MGPA has raised US$5.4 billion of capital commitments over the last five
years, ranking them (globally) number 11 of real estate asset managers
2012
Rank
1
Name of Firm
The Blackstone Group
Capital Raised
(US$ B)
29.100
2011
Rank
1
2
Morgan Stanley Real Estate Investing
12.667
2
3
Goldman Sachs Real Estate Principal Investment Area
12.124
5
4
Tishman Speyer
12.104
3
5
Colony Capital
11.654
4
6
The Carlyle Group
9.639
8
7
Lone Star Funds
7.900
10
8
Beacon Capital Partners
6.580
6
9
Westbrook Partners
6.025
11
10
LaSalle Investment Management
5.864
7
11
MGPA
5.426
13
12
Starwood Capital Group
4.595
21
13
CBRE Global Investors
4.035
15
Source: PERE Magazine
Private and Confidential
9
Investor profile
•
•
Total capital raised (including all Funds and co-investments) US$8.5 billion
91 investors across all industry sectors from Australia, Europe, Middle East and North America
Capital commitment by investor type
Capital commitment by region (number of investors)
4%
5%
Public Pension Fund
5%
Investment Manager
5%
38%
11%
22
Australia
30
Sovereign Wealth Fund
Europe
Corporate Pension Fund
Middle East
Other*
Insurance Company
15%
North America
3
Industry Pension Fund
17%
34
Foundation/Endowment
* Other includes HNW, Family office, FoF’s and Financial services
Average equity commitment by investor US$ MM
Capital commitment by region
75.0
115.2
20%
Australia
73.6
Europe
Australia
41%
Europe
Middle East
Middle East
North America
North America
268.4
30%
9%
Private and Confidential
10
MGPA in Europe – Proven Performance
• Well established European presence with over 80 staff in six offices
– 13 nationalities, 24 languages
• 298 properties acquired since 1999 across 13 countries
– Gross asset value of US$6.2 billion
• 20 development and re-development projects undertaken in ten countries
• Investments in 104 properties realised1
– Total gross asset value at disposition of US$3.4 billion
– Realised net investment level IRR 19%,
1 As at 31 March 2013.
2 Includes all realised investments across LLG, EFII and EFIII.
Private and Confidential
11
Assets in 13 European countries
Belgium
l Banimmo Portfolio
(corporate, office & retail)
l Sony Portfolio (office)
Denmark
 Illum (retail)
France
l Banimmo Portfolio
(corporate, office& retail)
l Akeler Portfolio
(corporate, office/logistics)
l Capital Sud (office)
 Logiffine (light industrial/logistics)
l Balthazar (office)
 Le Madeleine (office & retail)
 Viva (office)
Germany
l Akeler Portfolio
(corporate, office/logistics)
l MCT (office)
 GLI Portfolio (logistics)
 Sony Portfolio (office)
 ‘Dial’ and ‘August’ Portfolios (retail &
industrial)
 CNL GIT Portfolio (retail)
 Separate Account Portfolio (retail)
Greece
 Academy Gardens (retail)
Italy
l Sony Portfolio (office/logistics)
 Light Building (office)
Luxembourg
l Banimmo Portfolio (corporate, office & retail)
Poland
l Roundabout (office)
 Angel Wings (residential)
 Rondo 1 (office & retail)
 Wilanow One (residential)
 Karolinka (retail)
 Pogoria (retail)
Portugal
l Arrabida Shopping Centre (retail)
l Akeler Portfolio
(corporate, office/logistics)
Spain
l Amura (office)
l Metrovacesa (equity)
Switzerland
 Sony Portfolio (office)
The Netherlands
l Haslemere (equity)
 Sony Portfolio (office)
UK
l
l
l
l
l





Meadow Portfolio (mixed use)
Hayes Office Park (office)
Storage King (self storage)
Akeler Portfolio (corporate, office/logistics)
Chancery Exchange (office)
Sony Portfolio (office)
LIH (corporate)
Exchange Tower (office)
Moorgate Exchange (office)
6 Bevis Marks (office)
l Realised assets
 Currently owned assets
Private and Confidential
12
MGPA in Asia – Proven Performance
• Over 130 staff in China, Hong Kong, Japan, Singapore, Malaysia and Australia
• 130 properties acquired since 1999 across seven countries
– Gross value of US$11 billion
• 14 development and re-development projects undertaken in six countries
• 74 properties realised1
– Total gross value at disposition of US$2.9 billion
– Realised net investment level returns across value add and opportunistic strategies, IRR 18%,
1 As at 31 March 2013.
2 Includes all realised investments in Asia and Japan across LLGP, AFII and AFIII.
Private and Confidential
13
Assets in eight countries across Asia Pacific
Australia
 6-10 O’Connell Street (retail & office)
 Optima Centre (office)
China
l Platinum (office)
 Galleria Chengdu (retail)
l Panyu (residential & retail)
 j-Tower (office)
Hong Kong
l Lippo Towers (office)
l Repulse Bay (residential)
l 181 Queens Road (office & retail)
l Vicwood (office & retail)
l Great Eagle (equity)
l HK Land (equity)
Malaysia
 The Intermark (office, retail & hospitality)
Singapore
l Springleaf Tower (office)
 8 Shenton Way (office & retail)
 Asia Square
(office, retail & hospitality)
 Asia Square (office & retail)
l Cascadia (residential)
l 8 Napier (residential)
South Korea
l M Tower (office)
l KEB (NPL portfolio)
l Financial News (office)
Thailand
 Evolution Capital (hotel & leisure)
 Andaman (hospitality & residential)
Japan
l Arasho (office)
l MyAtria Ikebukuro (residential)
l Sogo Portfolio (office)
l Toranomon (office)
l Ueno building (office)
l Rosa Akasaka (residential)
l KIR Otemachi (residential)
l Osaka 2 Portfolio (office)
l Noda (logistics)
l Sanbacho (office)
 Whale Portfolio (residential)
 Ginza 4-Chome (office & retail)
 Strings Portfolio (office)
l MyAtria Portfolio (mixed use)
 Malera Shopping Centre
(retail)
 Fukuoka (office & retail)
 Meiwa 2 Portfolio
(office & residential)
 Higashi Ogijima (industrial)
l Shirokanedai (office & retail)
 Fuji Grand Imabari (retail)
l Ark II (office & residential)
 Whale Meguro
(office & residential)
l Hybrid Portfolio
(office & residential)
 Kameido (office)
l Meguro Yamate Place (office)
l Atria Meguro Tower (residential)
 South Shin Otsuka Building (office)
 Shinjuku TX Building (office)
l Realised assets
 Currently owned assets
Private and Confidential
14
Asia Square – Singapore
Current asset development
Key figures
Equity invested to date
US$1,724 million
Ownership
MGPA Asia Fund III
Acquisition date
Q4 2007 (Tower 1) and Q1 2008 (Tower 2)
Size
2.1 million sq ft of office and retail (NLA) and a
5-star hotel
Opportunity
Buy, develop, sell
• Key information
– Amalgamate two adjacent sites to develop an integrated premier office
complex with a 5-star hotel in new CBD of Singapore
– Asia Square Tower 1 completed in June 2011; Tower 2 scheduled to be
completed in Q3 2013
– Deliver efficient space for the financial services sector
– Tenants: Citi (anchor), Julius Baer, Sarasin Bank, Google, Lloyds of London,
Marsh & McLennan and Westin hotel
– Tower 1 is certified LEED Platinum (first in Singapore) and Tower 2 is precertified LEED Platinum.
Private and Confidential
15
The Intermark – Kuala Lumpur, Malaysia
Current asset redevelopment
Key figures
Equity invested to date
US$244 million
Ownership
MGPA Asia Fund II
Acquisition date
Q2 2007
Size (NLA)
1,315,659 sq ft (office)
208,697 sq ft (retail)
540 rooms (hotel)
Opportunity
Buy, fix, sell
• Key information
– A mixed use development of 2,755,948 sq ft comprising a 63 storey existing office
tower, a 40 storey new office tower, six storey shopping centre and a hotel
– Renovate existing office tower (Vista Tower) and hotel (Doubletree by Hilton)
– Demolish one of the poorly designed retail centres and re-develop into a new office
tower (Integra Tower)
– Capture planning gain through increasing allowable plot ratio to ten times
– Integra Tower received Certificate of Completion and Compliance in November 2012
– Tenants: Vista Tower – UOB, SMBC, BNP Paribas and Petronas; Integra Tower –
JP Morgan and Aker Solutions.
Private and Confidential
16
181 Queen’s Road Central – Hong Kong
Realised asset management
Key figures
Equity invested
US$85.5 million
Ownership
MGPA Asia Fund II (65%), co-investors (35%)
Acquisition date
Q2 2006
Size (GFA)
35,590 sqm
Realised date
Q4 2009 to Q1 2010
Gross sales price
US$434 million
Opportunity
Buy, reposition, sell
• Key information
– A 29 storey Grade B+ office building with retail podium
– Located in the fringe of Central Hong Kong
– Invested in an under-rented building in a market with limited supply, strong demand and a
positive rental growth outlook
– Realised reversionary value – passing rents over 50% below prevailing market rents
– Sold through strata title, to take advantage of opportunity in market cycle
– Net investment level return: IRR 20%, EM 1.8x.
Private and Confidential
17
Vicwood Plaza – Hong Kong
Realised asset repositioning
Key figures
Equity invested
US$67.4 million
Ownership
MGPA Asia Fund II (51%), co-investors (49%)
Acquisition date
Q1 2006
Size (GFA)
377,214 sq ft
Realised date
Q3 2010
Gross sales price
US$488 million
Opportunity
Buy, fix, sell
• Key information
–
–
–
–
–
–
–
A 35 storey building over four levels of retail and 29 office floors
Excellent transport connections including a footbridge system linking it to Central
Realised reversionary value – passing rents 50% below market rents
Improved tenant covenants (e.g. HSBC and Mayer Brown JSM)
Revitalised retail tenant mix and created direct access from retail podium to MTR
Upgraded office floors and increased leasable area from 377,214 sq ft to 390,161 sq ft
Net investment level return: IRR 23%, EM 2.2x.
Private and Confidential
18
56 Repulse Bay Road – Hong Kong
Realised asset repositioning
Key figures
Equity invested
HK$622 million
Ownership
Global Fund I (70%), co-investors (30%)
Acquisition date
Q3 2001
Size
188,294 sq ft
Realised date
Q4 2006
Gross sales price
HK$3,049 million
Opportunity
Buy, refurbish, sell
• Key information
– Located in Repulse Bay, traditional luxury residential area of Hong Kong, all 53 houses enjoy full
sea view
– Fixed the physical deficiencies, including water leakage, underperforming air conditioning and
dated aesthetic design
– Value added opportunity to upgrade the asset via refurbishment, including replacement of the
façade, upgrade of the car park and driveway and creation of new landscaped garden
– Rebranded the project including renaming it to ‘56 Repulse Bay Road’ and conducted high profile
marketing campaign
– Disposed of the asset on a strata title basis, major buyers were local HNW and family offices
– Net investment level return: IRR 29%, EM 1.7x.
Private and Confidential
19
Toranomon – Tokyo, Japan
Realised asset repositioning
Key figures
Equity invested
US$13.4 million
Ownership
Global Fund I
Acquisition date
Q4 2004
Size
4,692 sqm
Realised date
Q3 2006
Gross sales price
US$71.3 million
Opportunity
Buy, reposition, sell
• Key information
– Located on a major arterial route in central Tokyo
– Undertook extensive refurbishment and repositioning, including new façade to
provide modern office accommodation
– Let and sold into improving market cycle
– Net investment level return: IRR 61%, EM 3.2x.
Private and Confidential
20
Malera Shopping Centre – Gifu, Japan
Current asset repositioning
Key figures
Equity invested to date
US$153 million
Ownership
MGPA Japan Core Plus Fund
Acquisition date
Q1 2008
Size
76,143 sqm
Opportunity
Repositioning
• Key information
– Acquire a retail investment in suburban Japan in order to rebalance and
reposition the centre in the trade area to capture increased sales
– Off market acquisition
– Property management efficiently restructured and redesigned
– Centre has secured new tenants including new anchor tenants (Round One,
H&M, Zara and Bershka)
– Common areas have been improved and the centre re-zoned
– NLA has been increased by 277 tsubo following conversion of common area to
let area.
Private and Confidential
21
Ginza 4-Chome – Tokyo, Japan
Current asset management
Key figures
Equity invested to date
US$25 million
Ownership
MGPA Asia Fund III (100%)
Acquisition date
March 2012
Size
60,536 sq ft
Opportunity
Buy value with active management
• Key information
– A well-located office/retail property in the Ginza district of Chuo ward
– Lender took control of the asset following original developer’s bankruptcy.
Decision to dispose asset at significant discount to the original loan amount
provided attractive pricing
– 58% initial occupancy, to be leased-up and stabilized during the hold period
– The strategy is to lease-up and stabilize during the hold period and to achieve
cost reduction by streamlining the building management and property
management costs
– Sell at stabilized cash flows in central Tokyo to institutions such as J-REITs
– Increased occupancy to 100% within 6 months of acquisition
Private and Confidential
22
M Tower – Seoul, Korea
Realised asset management
Key figures
Equity invested
US$16 million
Ownership
MGPA Asia Fund II (50%), co-investor (50%)
Acquisition date
Q1 2007
Size
34,173 sqm
Realised date
October 2007
Gross sales price
US$166 million
Opportunity
Forward purchase
• Key information
– A 19 storey Grade A office tower development located in a prime area of the
CBD with a redevelopment plan
– Strong demand with limited supply. Building fully let prior to completion.
– Sold to a Korean REIT after the building was fully let
– Net investment level return: IRR 91%, EM 1.6x.
Private and Confidential
23
Galleria – Chengdu, China
Current asset management
Key figures
Equity invested to date
US$67 million
Ownership
MGPA Asia Fund III (50%), JV partner (50%)
Acquisition date
Q3 2011
Size (GFA)
385,125 sq ft (retail)
Opportunity
Acquire institutional Grade retail property with a
strong rental growth outlook
• Key information
–
–
–
–
Occupancy remains unchanged at 100%
Leasing performance is above underwriting
Ongoing discussions with Auchan about the connecting foot bridge
Approximately 7,800 sqm of let (23% of NLA/65 leases) space will expire in
second half of 2013, providing good reversionary potential. Majority of these
leases are on Levels 2 and 3.
Private and Confidential
24
Seeing Value in Real Estate
From MGPA to BlackRock
Private and Confidential
25
Bigger platform with wider coverage
• Platform expansion
– A team of over 400 real estate professionals
collectively
– Combined pro forma of approximately US$25
billion AUM as of 31 March 2013
The combined platform will have substantial on the ground
investment expertise in 18 offices across 13 countries
Paris
Pittsburgh
San
Francisco
New York
London Frankfurt
Copenhagen
Warsaw
Beijing
Shanghai
Tokyo
Boston
MGPA US$12 billion
BlackRock real estate US$13 billion
US$25 billion
Newport
Beach
Luxembourg
BlackRock Real Estate investment offices
MGPA investment offices
BlackRock and MGPA investment offices
Source: BlackRock as at 5 June 2013
Hong
Kong
Singapore
Kuala
Lumpur
Sydney
Future initiatives
• Launch follow on Funds
• Grow in all 4 quadrants
• Large core funds in each region & major country
• Value add & opportunistic on a regional basis
• Grow AUM selectively
Private and Confidential
27
Seeing Value in Real Estate
Real Estate Funds
Private and Confidential
28
What role does real estate perform in a balanced portfolio
• Inflation Protection – hedge against inflation
– Rental income highly correlated with inflation
• Return enhancer – higher long-term return than and bonds and cash
• Income generator
– Stable rental income from stabilised properties often secured against long term leases CPI indexed
• Diversification – weak correlation to equities and bonds
• Real assets
– You can feel and touch
• Low beta
– Lower long term volatility than equities
Private and Confidential
29
Real Estate offers many investment styles
Return
Equity
Debt
Private
Public
Private funds Core, core plus,
value-add,
opportunistic
REITs
Listed property
funds
Mezzanine
Whole loans
CMBS
Mortgage
REITs
Opportunistic:
18%-20%
Value-add:
13%-15%
Core plus:
10%-12%
Core:
6%-8%
Risk
Private and Confidential
30
Seeing Value in Real Estate
Real Estate Funds in Asia
Private and Confidential
31
Real Estate in Asia – How it has developed over time
Equity
Debt
Private
Public
Private funds Core, core plus,
value-add,
opportunistic
REITs,
Listed property
funds
Mezzanine,
Whole loans
CMBS,
Mortgage
REITs
1998
2004
1993
2013
Private and Confidential
32
Capital inflows for Asia Funds 1995 -2013
• Fund raising environment remains challenging
– Declining capital raised/fund ratio
Real Estate Funds Raised in Asia
$35
60
$30
50
40
$20
30
$15
20
$10
Capital Raised (US$ bn)
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
1997
$0
1996
10
1995
$5
Number of Funds
Capital Raised US$ bn
$25
Number of Funds
Source: Preqin
Private and Confidential
33
What investors want
• Stability
– Stable political and economical environment
• Certainty
– Continuity of policies, regulations
• Transparency
– Availability of information for investors making informed investment decisions
• Rule of Law
– Law enforcement
– Title
• Liquidity
– An active transaction market
– Robust Capital markets
Private and Confidential
34
What's changed in a post GFC world
•
•
•
•
•
•
•
•
•
•
Initially less capital – This is changing
LP’s want more say
Definition
New formats
Less fees
Greater Transparency
Greater regulatory environment
Operators V Allocators
Fiduciary culture
Increased communication
Private and Confidential
35
Where the capital is heading
• Capital is heading to markets that
– welcome capital
– have liquidity
Most active markets in H1 2013
Most active cities in H1 2013
Source: JLL
Private and Confidential
36
Institutional grade real estate market size
• The U.S. still dominant by a very large
margin
Estimated Size of Real Estate (US$ bn)
U.S.
Japan
China
Germany
U.K.
France
Italy
Brazil
Canada
Spain
Australia
South Korea
India
Singapore
Hong Kong
Taiwan
Indonesia
Thailand
Malaysia
Philipines
Vietnam
6,753
2,678
1,864
1,615
1,370
1,248
990
884
784
689
656
467
350
241
211
198
189
89
84
48
21
Estimated Size of Real
Estate (US$ bn)
Source: Prudential Real Estate Investors
Private and Confidential
37
Asia – the growth engine
• Asia Pacific is expected to become the largest real estate market in the world by
2021
• China will contribute the most to the global growth of CRE
Forecasted Size of Real Estate (US$ tn)
Contributions to global growth of CRE
Source: Prudential Real Estate Investors
Private and Confidential
38
2013 – 2018 Crystal ball
• Defined benefit to defined
contribution
– More money
– Greater liquidity
– More allocation to alternatives
DB/DC Asset Split
Pension asset allocation
Source: Towers Watson
Private and Confidential
39
2013 – 2018 Crystal ball
• Real assets – growth trend
–
–
–
–
Infrastructure
Real estate
Timber
Agricultural land
• Emerging market
Pension asset development in Asia and CEE (€ bn)
– Retirement plan (pension)
– Life insurance
– Matching assets with liabilities
Source: Allianz Dresdner
Economic Research
Private and Confidential
40
Seeing Value in Real Estate
Thailand- in an Asian RE investment context
Private and Confidential
41
Thailand- in an Asian RE investment context
• Current GDP 5.3%1
– 3-yr forecast average: 4.7%
– 3-yr historical average: 4.4%
• Population 66.4 billion, growth at 0.3%
p.a. (2010-15)2
– 2015 projection: 67.4 billion
• Diversified economy
Source: CIA World Factbook, 2012 est.
1 Source:
2 Source:
IHS
United Nations, Department of Economic and Social Affairs (as of 2010)
Private and Confidential
42
Thailand- in an Asian RE investment context
• Asian real estate ex. Japan delivers consistent positive returns
Asian markets 5-year total return
20.0%
Asian markets 10-year total return
25.0%
15.0%
20.0%
10.0%
5.0%
15.0%
0.0%
10.0%
-5.0%
5.0%
-10.0%
0.0%
-15.0%
Japan
China
Singapore Hong Kong Malaysia
5-Year Income Return
Thailand
5-Year Capital Appreciation
Japan
China
Singapore Hong Kong Malaysia
10-Year Income Return
Thailand
10-Year Capital Appreciation
Source: MGPA, JLL REIS
Note: the returns were calculated based on JLL office total return indices (local currency)
China – Beijing & Shanghai
Private and Confidential
43
Thailand- in an Asian RE investment context
• Much less inbound institutional investors
– Thailand is not getting its “fair share”
US$ bil
3.0
Cross-boarder Investment Volume from Institutional Investors
(ex. China and Singapore)
2.5
2.0
1.5
US$ bil
Cross-boarder Investment Volume from Institutional Investors
1.0
35
0.5
30
2012
2011
2010
2009
2007
2008
0.0
25
20
Thailand
15
Malaysia
India
Indonesia
10
5
China
Singapore
Thailand
Malaysia
India
2012
2011
2010
2009
2008
2007
0
Indonesia
Source: Real Capital Analytics
Private and Confidential
44
Thailand- plenty of room to grow
• Thailand has lagged in developing a REIT market, compared to its peers in
ASEAN
• It has also lagged in the size of institutional-grade real estate
REITs Market Cap (US$ bn)
Thailand Taiwan
Malaysia 6.6bn 2.9bn
8.5bn
Hong Kong
24.3bn
Insitutional-Grade RE Market Size (US$ bn)
Thailand Taiwan
89bn 198bn
Korea
0.5bn
Japan
72.2bn
Korea
467bn
Malaysia
84bn
Hong Kong
211bn
Singapore
241bn
Singapore
47.1bn
Source: Asia Pacific Real Estate Association (APREA)
Japan
2,678bn
Source: Prudential Real Estate Investors
Note: For charting purpose, property funds are used as a proxy for REITs in Thailand
Private and Confidential
45
The landscape ahead: Where will capital go?
• Its all about change
• The rate of change
• How we adapt to change
• Capital is agnostic
• Adapt and grow or atrophy and die
• Detroit
Private and Confidential
46
Seeing Value in Real Estate
22 July 2013
Development of Real Estate Funds
Management in Asia
Private and Confidential
47
Disclaimer
The information in this document is being delivered and provided on a confidential basis and as an information only document. No offer is being made by
MGPA by delivery of this document and no reliance should be placed upon the contents of this document by any person who may subsequently decide to
enter into any investments, investment services or transaction which may be described herein.
This document is provided for assistance only and is not intended to be and must not alone be taken as, the basis for a decision to enter into any investments,
investment services or transaction which may be described herein.
Recipients of this document should not treat its contents as advice relating to legal, taxation or investment matters and are advised to consult their own
professional advisers concerning any investments, investment services or transaction that may be described herein.
Third party information contained in this document has been compiled from sources believed to be reliable but no liability is accepted if this is not the case.
In considering any performance data contained herein, you should bear in mind that projected returns are not indicative of future results, and there can be no
assurance that an investment will achieve comparable results or that projected returns will be met. A full list of past specific recommendations is available
upon request.
This document is proprietary to MGPA. By accepting delivery of this document, the recipient agrees not to reproduce or distribute this document in whole or in
part and not to disclose any of its contents (other than to obtain advice on it from a legal, business, investment or tax advisor) without the prior written consent
of MGPA.
© MGPA 2013
Private and Confidential
48

similar documents