Asian Real Estate
Capitalising on Asia Pacific’s long-term prospectFour drivers of real estate returns in Asia Pacific
The region has some of the world’s most dynamic and fastest-growing real estate markets. Growth in real GDP, urban populations and the size of the middle class is expected to outstrip other regions over most of this decade. In particular, four key trends have led to various market dislocations that investors shouldn’t overlook:
Urbanisation
The movement of people to the region’s cities is relentless, accelerated more recently by the development of the Greater Bay Area in China.
Middle-class expansion
Ongoing accumulation of wealth among individuals is under-pinning the rise of office-based employment and demand for office space.
Advances in the tech sector
Asia has emerged as a leader in technology including 5G, mobile networks, e-commerce, creating technology clusters and hubs in the more tech-advanced cities.
Ageing populations
With evolving demographics across the region, sectors in relation to retirement living have emerged to cater to the “silver” economy.
Capitalising beyond traditional asset types
Optimism for commercial real estate in Asia Pacific is strong. Despite external risks, the US$200 billion-plus record investment in 2021 has the potential to grow by 10% this year, with allocations to alternative assets increasingly appealing. Hear from Andrew Moore, Head of Real Estate, Asia Pacific, Schroders Capital.
Multi-family
Rising residential housing prices coupled with limited stock are driving more people to the rental market and co-living arrangements.
Data centres
Data centres benefit from the structural themes of urbanisation, technology and middle-class growth.
Life science
Developments in biotech, medical equipment and healthcare are creating new real estate investment opportunities.
Senior living
Growing number of retirees with capital are seeking desirable assisted living environments, driving demand for related facilities and space.
Schroders Capital real estate capability in Asia Pacific
A leading value-add real estate investor in Asia Pacific, with cycle-tested teams providing tailored investment solutions.
Experience
Investing in Asian real estate for over 20 years
Investment
Invested over US$4.4bn[1]
Team
Operating model with 20+ real estate professionals
Source: Schroders Capital, April 2022
[1] The US$4.4 billion of gross asset value (GAV) comprises US$1.74 billion of current assets under the platform’s management and US$2.63 billion of gross real estate assets realised, inclusive of co-investments managed by the platform, as at December 2021.
Case studies on value enhancement
Our strong track record illustrates our capability to couple top-down strategic thinking with property-level expertise, to create value that didn’t previously exist. Some of our value-add strategies illustrated in the video include:
- Modification of use
- Tenant mix optimisation
- Refurbish and rebrand
ESG, Sustainability and Impact is in our collective DNA
Sustainability is at the heart of both Schroders Capital and the Schroders Group. Supported by Schroders Group specialists and resources, we have a dedicated team of sustainability and impact experts leading our efforts.
Putting sustainability and impact at the core of the investment process
Our Sustainability and Impact framework is based on the Operating Principles for Impact Management (OPIM). This is to ensure that sustainability is embedded in all the relevant steps of the investment process from the strategic intent to origination and structuring, portfolio management, impact at exit and verification.
Integrated ESG approach across the entire value chain
Risk monitoring
In addition to regulatory framework, we leverage proprietary Schroders technology to measure:
- Impact of environment on our portfolio
- Impact of our portfolio on environment
Mitigate impact and output
- Targeted investment to mitigate our portfolio’s impact on environment
Leverage 20 years of impact expertise
Net Zero pathway across all assets
Impact investing
- Collaboration with BlueOrchard, member of the Schroders Group
- Aim to deliver social impact alongside financial gains
Learn more about accessing the Asian real estate opportunities with us now.
Schroders Capital
With over $90 billion assets under management, we offer a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, insurance-linked securities and impact investing.