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\n APREA’s rebranding celebrates 16 years of long-term industry advocacy with re-found purpose in \u201cDriving the Future of Real Assets\u201d <\/p>\n
SINGAPORE –\u00a0Media OutReach<\/a>\u00a0– 7 April 2021 –\u00a0APREA<\/a><\/i> celebrates its 16th<\/sup>
Asia’s economic transformation
The economic ambitions of the region will provide the necessary impetus
China<\/u> has announced plans to
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In Southeast Asia<\/u>, ambitious infrastructure projects are
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“As it stands, Southeast Asia’s US$2.4 trillion economy is the
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Plans to integrate the region’s economies will also fuel another
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The Rise and Rise of REITs<\/b><\/p>\n
Government policies in the region will continue to be conducive with significant
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“Market
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Massive Opportunities Ahead<\/b><\/p>\n
By 2030, seven of the world’s 10 largest megacities will be in the Asia
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“The benefits of investing in institutionalized assets will be more
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Please download the full media kit via the link
\nanniversary with the association’s mission redefined: To
\npromote growth in the real assets sector by being the voice of members in all policy matters,
\nproviding access to industry-advancing research and insights and connecting
\nmembers to business opportunities.<\/p>\n
\nover the past 60 years has been unprecedented with the 21st century being
\ndescribed as the “Asian Century”. Despite the pandemic turmoil, Asia remains
\nthe locus of future global growth, expected to boast the largest economies in
\nthe world including China, Japan, India and the ASEAN region in 2030 and
\nbeyond. Driven by demographic tailwinds, urbanization in the Asia Pacific is an
\nepic boom that will drive the growth of its middle-class and with it, a cycle
\nof rising consumption. Real assets are a play into the region’s structural
\nmegatrends that will outlive the pandemic.
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The
\nAsian Century – Real Assets Growth
<\/b>The Asian Development Bank
\nestimates that the region will need to invest $26 trillion from 2016 to 2030 if
\nthe region is to maintain its growth momentum, eradicate poverty and respond to
\nclimate change \u2013 that works out to US$1.7 trillion a year to the end of the
\ndecade. Currently, only about US$900 million are estimated to be invested
\nannually. In other words, if policies are conducive for the private sector to
\nstep in to fill this void, Asia Pacific provides an infrastructure investment
\nopportunity of over US$8 trillion over the next ten years.
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“Infrastructure is ultimately
\nwhat translates the impact
\nof urbanization into benefits for real estate. With the requirements needed by
\nthe rapidly developing economies that will eventually host more than half of the
\nworld’s megacities, investments into infrastructure development in the Asia
\nPacific is a cycle that will be played out over decades,” commented Mr. John
\nLim, Chairman of APREA, also Co-Founder & Deputy Chairman of ARA Asset
\nManagement Limited.
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Infrastructure demand is expected to increase
\nexponentially, thus, enabling sustainable financing of these massive projects to
\ngain traction. And there will be opportunities for the private sector to participate,
\nas many of the infrastructure initiatives align with ESG allocations,
\nre-development, connectivity, and economic growth.
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Economic Aspirations \u2013 The Key Regional Drivers\u00a0<\/b><\/p>\n
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\nto power infrastructure spending and lift it out of the coronavirus slump. <\/p>\n
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\nfocus on developing “new infrastructure” to reach development targets. Key infrastructure
\ninvestment plans announced for the next 5-7 years will require close to US$7
\ntrillion. Bets are also placed on India<\/u>‘s infrastructure sector. The
\nIndian government, in its latest budget, has pledged to expand expenditure into
\nits US$1.5 trillion infrastructure pipeline, creating financing institutions
\nthat can open the role of capital markets in infrastructure financing.<\/p>\n
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\nhappening across the region. President Duterte’s “Build! Build! Build!”
\ninfrastructure plan in the Philippines<\/u> is underway with 75 different
\nprojects expected to cost US$180 billion. In Indonesia<\/u>, a high-speed
\nrail system connecting the 140-km trip between Jakarta and Bandung is also
\nbeing built.<\/p>\n
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\nseventh-largest in the world and is forecasted to jump to fourth largest in Asia
\nPacific by 2050. Its workforce will grow by a further 60 million while its urban
\npopulation is expected to rise by an additional 90 million by 2030. The reality
\nis that ASEAN needs infrastructure development if it wants to sustain its
\neconomic growth,” says APREA’s Chief Executive Officer, Miss Sigrid Zialcita.<\/p>\n
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\ninfrastructure boom. While China’s Belt Road Initiative has undoubtedly headlined
\nthe effort to connect Asia, they are by no means alone. Japan<\/u>
\narticulated its own Partnership for Quality Infrastructure to expand funding in
\nthe region’s infrastructure development. Infrastructure diplomacy programmes
\nhave also seen U.S. and Australia<\/u> collaborate on infrastructure projects
\nin the region. Similarly, the European Union has its own “Connecting Europe and Asia” strategy.
\nAll this points to an internationalization of capital in the Asia Pacific.<\/p>\n
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\nefforts made by fast-growing countries to develop their own REIT regimes.
\nEconomies are in a race to secure their REIT future and
\nsignificant momentum will be created as regulators strive to stay ahead of the game. Further
\ngrowth of the asset class will also be propelled by the participation of the
\nregion’s largest emerging economies. As the REIT movement accelerates in the
\nregion, the stock of institutionalized assets will continue to grow.<\/p>\n
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\ncapitalization of the region’s REITs has risen from under US$6 billion at the
\ndawn of the new century to over US$315 billion now[1]<\/sup>.
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\nare significant drivers to contemplate that once China’s and India’s REIT
\nmarkets are established and mature, Asia Pacific will sit as the Global REIT
\nepicenter with total market capitalization to hit over US$1 trillion by the
\nend of the decade, surpassing that of the US,” said Miss Zialcita.<\/p>\n
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\nPacific. The region’s urban population will expand by close to three billion. Increasingly, the
\nregion is emerging to be an investment hotspot for cross border investors. Additionally,
\nthe region remains a hot
\nbed of construction activity and as its cities continue to grow, the
\nfundamental demand for real estate and infrastructure will increase in tandem. As economic focus increasingly turns to longer-term recovery, infrastructure investments<\/i> and REITs<\/i> are a crucial part of this
\nequation, to fast track the region’s recovery from the pandemic and secure its
\neconomic future.<\/p>\n
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\nevident as the world inches towards a post-pandemic future. Allocations to the
\nregion from global investors can only continue to rise and the securitization
\nof the very assets so critical in driving its growth will be a massive
\ninvestment opportunity. Asia
\nPacific remains primed to take advantage of this revolution in real assets. APREA’s goal is to pave the
\nway for the advancement of investment opportunities into the region’s real assets,”
\nsaid Mr. John Lim.<\/p>\n
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\nbelow: <\/b><\/p>\n
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