Asian institutional investors appear to be positioning themselves to take advantage of growing opportunities in a reviving US real estate market – and if they’re not, then perhaps they should be –industry experts have told AsianInvestor.
Todd Henderson, DWS
“While many Asian investors have been overallocated to real estate, or are waiting for valuations to reflect the current cost of capital, they’ve still been very interested in the space,” Todd Henderson, global co-head of real estate and head of real estate for the Americas at asset manager DWS, told AsianInvestor in an interview in Singapore.
“They’re now beginning to get very active in underwriting funds with the idea that they’re going to be making investments in the last part of this year or be in a position in 2024 to take advantage of what we believe is a pretty good vintage year for investing.”
Chris Pilgrim, managing director for Asia-Pacific global capital markets at real estate services firm Colliers, shared that view, noting that the US was home to the world’s most liquid real estate market, even in volatile times. Pilgrim added that the series of Federal Reserve interest rate increases over the past 18 months was impacting American real estate valuations, attracting “meaningful capital from the Asia-Pacific region”.
Chris Pilgrim, Colliers
“From an Asia-Pacific point of view, investors are waiting for the exact right moment [to boost allocations to US real estate],” he told AsianInvestor.
“We’re seeing far more interest in terms of product coming to market and investors looking for product and beginning to work to deploy their capital. This reflects the fact that there’s a consensus that interest rate rises are largely calming down, if not coming to an end. The US has been one of the fastest markets to reprice, which means it’ll be one of the first markets to start seeing capital again.”
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