Asia Pacific Real Estate Market Strong

10/18/2011 | By Matthew Bechard

Speaking with during the European Public Real Estate Association's annual conference in London in early September, Andrew Parsons, senior portfolio manager with Resolution Capital, discussed the state of the market in the Asia Pacific region.

He said that one of the biggest issues is corporate governance and matching the needs of investors with a board that can meet those particular needs.

Parsons outlook for the region is positive. He added that the balance sheets of the Asian and Australian REITs are strong.

However, the adoption of REIT rules in the global real estate investment market is a work in progress, according to Parsons.

"It's interesting with the U.S. REITs being largely an internal management structure and with Asia developing a slightly different path with the external management model," said Parsons. "That's the greatest challenge for the REIT industry in the region, understanding why the U.S. went down a particular path of internal management and ensuring that best practices follow in the Asian market."

Parsons said he's not keenly focused on any particular markets but, instead, is focused on looking for the best real estate.

"It's not so much the markets we're interested in, but really great management and great real estate, so that's the critical issue. If we can get REIT legislation through in certain markets we'd be very appreciative of that fact as it's obviously more tax efficient for our investors," said Parsons.

Additionally, Parsons said he has his eye on China, which is slowly entering the REIT sector, as well as India and Brazil.