Asia-Pacific

The contribution of Asia-Pacific-based firms to PERE’s real estate debt ranking is growing.

Australia’s population growth, combined with the ongoing withdrawal of its banks from commercial real estate debt, is spawning opportunities for alternative lenders, say Qualitas’s Mark Power and Dean Winterton.

CBRE estimates the region’s outstanding senior commercial real estate debt at $254bn as of mid-2023, with a debt funding gap of $5.1bn for loans maturing in 2023-25.

Fundraising for APAC-focused real estate debt funds came back down to Earth in 2023, having reached a peak the previous year.

PAG’s Chris Gradel considers the expanding opportunities for private real estate debt in APAC.

Falling asset values and conservative banks are forcing investors to turn to private debt to refinance their portfolios.

The region’s property owners are better protected from credit market dislocation than those in the US and Europe, but that is not all positive.

Indonesia’s first and only sovereign wealth fund expects to expand its real estate allocation to 15% over the next five years.

At the PERE Network Asia Summit, the sovereign fund’s global head of real estate said elevated rates had made the sector less competitive.

Pollack will be joining the firm at a time when alternative lenders are expected to be able to significantly increase their market share.