\n|
<\/p>\n Singapore<\/p>\n
\n <\/td>\n
<\/p>\n |
<\/p>\n 6.9<\/p>\n
\n <\/td>\n
\n <\/tr>\n<\/tbody>\n<\/table>\n Source:
\nAPREA<\/p>\n
\n
<\/p>\n Note: Data as of 1 June 2021<\/p>\n
\n
\n
\n
<\/p>\n As
\ncountries look to bounce back rapidly from the pandemic-induced recession,
\ngovernments are placing infrastructure-led investments high on the stimulus
\nagenda. Infrastructure
\nspending has long been viewed as a powerful lever that governments can pull to stimulate
\nthe economy. Supranational
\nbodies like the
\nInternational Monetary Fund have also weighed in, noting that current low
\ninterest rates is a window of opportunity that should be seized upon.<\/p>\n
\n
<\/p>\n “Infrastructure
\ninvestments form a crucial part of this equation, to fast track the region’s
\nrecovery from the pandemic and secure its economic future,” observed Sigrid Zialcita, CEO of
\nAPREA.<\/p>\n
\n
<\/p>\n The Asian
\nDevelopment Bank estimates that the region will need to invest $26 trillion
\nfrom 2016 to 2030 if the region is to maintain its growth momentum, eradicate
\npoverty and respond to climate change \u2013 that works out to US$1.7 trillion a
\nyear to the end of the decade. Currently, only about US$900 billion are
\nestimated to be invested annually. This yields a financing gap of close to US$1 trillion a year to the end
\nof the decade.<\/p>\n
\n
<\/p>\n Given the
\nsubstantial outlays involved, the requirements are unlikely to be met by traditional sources of
\nbanking. Public
\nbudgets, already stretched by fiscal responses to the pandemic, will also be
\nlimited. This entails new financing bases \u2013
\nfrom asset recycling or monetization strategies, private equity and
\nprivate-public partnerships \u2013 to drive repeated rounds of infrastructure
\ninvestment by tapping on institutional capital and the mobilization of retail
\nsavings.<\/p>\n
\n
<\/p>\n Enabling
\nthe sustainable financing of these massive projects will gain traction and
\nfoster the development of infrastructure as an asset class. For example, infrastructure trusts, like REITs,
\nprovide a long-term source of capital that funds development cycles, catalyzing
\nurbanization through which a country’s economy can be elevated.<\/p>\n
\n
<\/p>\n “Infrastructure
\ntrusts can form a critical layer in the capital stack for financing
\ninfrastructure developments in the region. Not only will it enable developers
\nto recycle capital, the vehicle can also form an effective exit strategy for
\ninfrastructure funds in the region,” noted Miss Zialcita.<\/p>\n
\n
<\/p>\n With the
\npandemic exerting some urgency, there is now growing expectations that infrastructure financing volumes
\nin the region will surge.
\nIt is not only because of the considerable multiplier effects that such massive
\ninvestments generate, it is also the groundwork it lays for future economic
\ngrowth. As the focus
\nincreasingly turns from containment to longer-term recovery, countries will be keen to ride on
\nthe anticipated post-pandemic economic boom which a synchronous global recovery
\nwill drive.<\/p>\n
\n
<\/p>\n “The
\nregion’s largest economies are pivoting to infrastructure investments in a big
\nway. We see this as an
\nacceleration of the securitization trend in infrastructure and the pent-up
\ndemand for industry players eager to tap into its potential. Aside from the
\noft-mentioned fast-tracking of digital trends and e-commerce, the pandemic has also been game changing in hastening the securitization
\nmovement in the region,” Miss Zialcita noted.<\/p>\n
\n
<\/p>\n Investors
\nare also turning bullish over the long-term fundamentals of the sector. Global
\ninvestment firm KKR just closed this year its first Asia Pacific fund at US$3.9
\nbillion to become the largest pan-regional infrastructure fund in the region.
\nWhile the lack of investment grade projects available remain an obstacle for
\nnow, development is expected to accelerate.<\/p>\n
\n
<\/p>\n “As an
\nasset class, infrastructure is inherently less susceptible to economic cycles,
\ndelivering diversification benefits in addition to a predictable long-term
\nstream of income. With the requirements needed by the rapidly developing
\neconomies in a region that could eventually host more than half of the world’s
\nmegacities, investments into the very assets so critical in driving its growth is a trend that will be played out over decades,” said Miss Zialcita.<\/p>\n
\n
<\/p>\n By 2030,
\nseven of the world’s 10 largest megacities will be in the Asia Pacific. The
\nregion’s urban population will expand by close to three billion. The region
\nremains a hot bed of construction activity and as its cities continue to grow,
\nthe fundamental demand for real estate and infrastructure will increase in
\ntandem. Plans to integrate the region’s
\neconomies through infrastructure diplomacy programs will also fuel the
\ndevelopment boom.<\/p>\n \u00a0<\/p>\n
\n
<\/p>\n Anticipating
\nthe enormous implications of these megatrends, APREA rebranded recently to expand its reach to include
\ninfrastructure investments in its mandate. The benefits of investing in institutionalized
\nassets will be more evident as the world inches towards a post-pandemic future
\nand the securitization of the very assets so critical in driving its growth
\nwill be a massive investment opportunity.<\/p>\n
\n
<\/p>\n “The region remains primed to take
\nadvantage of this revolution in real assets. APREA’s goal is to pave the way for the expansion of
\ninvestment opportunities in the region and catalyse the rise of Asia Pacific’s
\ninfrastructure asset class,” Miss Zialcita added.<\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"China REITs add a compelling dimension to
the real assets sector in the region. Enabling the sustainable financing of
these massive projects will spur the development of new financing vehicles
and foster the development of infrastructure as an asset class. NEW DELHI,
INDIA – Media OutReach – 16 June
2021 – China’s highly anticipated REIT …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/15569"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=15569"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/15569\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=15569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=15569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=15569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |