(18-03-2013, 11:09 PM)mrEngineer Wrote: I am just wondering how long can the REITs industry last. If property bubble market burst, rentals income fall, REITs income fall, management income of ARA drops, less demand of REITs IPO, bigger pressure for ARA to exit investments in private funds, no carried interest to grow fund and the vicious cycle continues. Same as when Asia boom is overrated and Chinese do not start consumption to generate GDP fast enough.
ARA have to secure properties with good locations in order to sustain and recover from a tough period like that.
I agree but REITS are here to stay simply because it serves a disintermediation purpose. It is win-win for the investors and the business owners.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
REITs with its economies of scale and expertise can do a better job than strata owners. Thus, it is able to produce better yield. Of course, if the property market collapses, all property owners suffer.
If the market suffers a mild correction, it is an opportunity where property owners including REITs may pick up some gems that were too expensive earlier.
22-04-2013, 10:51 PM (This post was last modified: 22-04-2013, 11:21 PM by Boon.)
Ocean Tower in Shanghai had been sold to ARA, according to the following report. My guess - it was acquired by the CIP fund and not ADF II
"The Ascendas fund also sold Ocean Tower, another office building in the same district, to ARA Asset Management in the first quarter of this year for about CNY1.9 billion, according to real estate firm Jones Lang LaSalle"
(22-04-2013, 10:51 PM)Boon Wrote: Ocean Tower in Shanghai had been sold to ARA, according to the following report. My guess - it was acquired by the CIP fund and not ADF II
"The Ascendas fund also sold Ocean Tower, another office building in the same district, to ARA Asset Management in the first quarter of this year for about CNY1.9 billion, according to real estate firm Jones Lang LaSalle"