CapitaLand Moves To Top Asia-Pacific Real Estate With $55.9 Billion In Assets

Singapore-based real estate firm CapitaLand moved to the top of the heap in Southeast Asia with about $55.9 billion assets under management (AUM). According to The Straits Times, the company built its assets even as the region got together and moved to set itself up for a bigger piece of the global property pie.

The Asia-Pacific (APAC) region was reported to have tabulated $588.8 billion worth of total real estate AUM in 2018. This was good for 18.4 percent of $3.2 trillion real estate AUM tabulated globally. This year, the AUM was up 16.9 percent from rates recorded in 2017, according to data gathered by three globally recognized real estate industry associations.

CapitaLand, meanwhile, was active on a few fronts, leading the region in 2018 APAC ranking with about $55.9 billion AUM. Its closest rival was Singapore-based GLP, the logistics group, which scored about $36.6 billion. Another Singapore-based firm, Mapletree, came in third with about $28.3 billion in AUM posted.

CapitaLand's dominance comes at a time when logistics real estate is also dominating the property market. Institutional investors are chasing after logistics real estate assets worldwide, Freight Waves reported. It appears that they are chasing after lower yields, or capitalization rates, which will then translate to higher prices for the assets.

As seen in data collected by real estate and logistics company CBRE Services, Inc., about 47 of 63 global markets have recorded lower yields last year than the previous year. Hong Kong posted the lowest rates out of anybody, partly due to being a prime logistics market with scarce land and strong demand from local and foreign investors.

Other areas posted curious data. Logistics yields in the US--in Tier I and II hub markets--were at a 24 basis-point low, good for 5.47 percent. The European, Middle East, and African sector--collectively known as the EMEA--had its lowest yield of 5.41 percent. In contrast, the Asia-Pacific region often regarded a laggard in this factor, had a yield of 5.97 percent.

Notwithstanding the trend in logistics, the lead by CapitaLand shows which assets under management in real estate are strong performers. The surge was enough to show that real estate's diversification is strong and clear in play. The increase of the total real estate AUM in the Asia-Pacific region is a big reflection of the improvements happening, indicating a strong future for both AUM and the logistics sector.

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