Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Savills IM Takes Aim at Logistics, Japanese Apartments for 2021

2020/11/28 by Elizabeth Kerr Leave a Comment

Tokyo Skyline

Savills IM sees multifamily opportunities in Japan’s major cities

In what it refers to as a “secular shift in capital markets”, Savills Investment Management (Savills IM) points to logistics, centrally located offices in key centres and multi-family assets as prime long-term investment assets in Asia Pacific for the coming year.

In its Outlook 2021: Building Resilience in Global Real Estate Portfolios report, the fund management affiliate of UK property consultancy Savills reveals that 70 percent of the world’s investors see investment into APAC either holding steady or increasing next year.

“Our research shows that real estate investors are confident about 2021, and recent positive announcements about the availability of a vaccine could certainly accelerate the recovery, boost sentiment and help cross-border investments to flow,” said Alex Jeffrey, global chief executive of Savills IM.

He added that despite this year’s disruptions, “investors should embrace the structural trends that have accelerated because of COVID-19”.

Offices Still Integral to Work

As investors regain confidence in COVID-battered economies, Savills IM expects the coming year to be defined by protecting existing portfolios and capitalising on structural trends accelerated by the pandemic. The international advisory also estimates that despite the paradigm shift in office work, the office market will remain resilient.

alex jeffrey

Savills IM CEO Alex Jeffrey

Although office leasing activity worldwide has dipped in the face of the pandemic and the subsequent vacancies in central business districts, Savills expects efficient, accessible properties in well-connected locations to perform respectably in the long term, suggesting that office dynamics are irreplaceable.

“Face-to-face office collaboration facilitates knowledge spillovers, learning and mentoring, improves creativity, and enhances productivity,” the report said. “The office is also a hub for social interaction, fuelling a collaborative and productive company culture.”

Fringe locations and Grade B offices in key centres such as Singapore and Seoul are seen providing crucial value-add or core-plus options, with regional Japanese cities becoming prime locations in which to exploit a wealth of cost-saving occupiers.

Among the hurdles investors may have to clear in the coming 12 months, in addition to continued COVID-related challenges, are ongoing Sino-US trade tensions and similar frictions within APAC.

“China’s assertiveness regionally and the deterioration in intraregional relationships such as that between China and India or China and Australia may have some impact on local economies, given China’s role as an important trade partner,” the report said.

Logistics Moves Up

Buoyed by supportive fundamentals, such as continued growth in e-commerce, favourable structural tailwinds and policy support — in the form of the 15-member APAC Regional Economic Comprehensive Partnership, signed on 15 November — logistics leads all asset classes with regard to favourability for the year.

REIT forum 2022_250 ad

Savills IM’s survey-based research found 57 percent of investors predicting increased exposure in big box distribution and fulfilment centres and 55 percent considering investment in last-mile and urban logistics assets.

Just this month, Singapore’s GIC added to its already extensive portfolio of warehouse investments with the roll-out of a European last-mile logistics joint venture with the UK’s Melcombe Partners.

The sector has been tapped as among the resources critical to the expected roll-out of the coveted COVID-19 vaccine, making markets with a shortage of modern facilities — particularly cold storage — ripe for mixed-use logistics facilities, according to Savills.

Also this month, US developer Hines announced that it had teamed up with Carlyle’s Metropolitan Real Estate unit to acquire a refrigerated warehouse project in the southern Chinese city of Dongguan, in the first of what is expected to be a series of cold chain projects.

Finding Value in Retail and Residential

Japan’s multi-family residential sector, which continues to benefit from regional patterns and favourable urban demographics, is expected to provide investors with a stable and defensive option, as long as investment is rooted in high-quality assets that provide a steady income.

Savills IM’s prediction on Japanese apartments is in line with the performance of the asset class in 2020, when investments in the nation’s multifamily sector reached $4.9 billion in the first half of the year. That number was more than triple the amount of cash that went into the market segment from January to June 2019, according to data from Real Capital Analytics.

In October, the fund management affiliate of UK property consultancy Savills reached a $200 million first close on Japan Residential Fund II (JRF II), an investment vehicle targetting opportunities in Japan’s multifamily sector, and the company’s its first open ended core fund in Asia.

The coming year’s most surprising under-the-radar investment star will be retail, according to Savills IM. “Opportunities to acquire underperforming smaller sub-regional shopping centres to reposition as neighbourhood centres, particularly in Australia,” are among 2021’s best bets, the report said.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: Alex Jeffrey, daily-sp, Featured, Savills Investment Management

https://player.vimeo.com/video/644203510?h=bc8945e2fd

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

core panel screenshot2

Allianz, KKR, Gaw and Colliers See Top Asia Office Markets on the Upswing

Japan Logistics Panel

Japan Logistics Offers a Safe Haven During a Bumpy 2022: MTD TV

More MTD TV Videos

Latest Stories

Matthew Zann Big Screen 3

EQT Exeter Eyeing Logistics-Focused APAC Fund, Regional Boss Tells MTD TV

Japan Logistics Panel

Japan Logistics Offers a Safe Haven During a Bumpy 2022: MTD TV

Li Sze-lim

Guangzhou R&F Delays 2021 Results for 3rd Time, Sets August General Meeting

Sponsored Features

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

Vietnam’s BW Acquires First Assets in Long An Province as Growth Continues Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.