Aurex Insights: Greater China Real Estate Investment Market Review

QI 2020

Real Estate Investment Quarterly Review

Welcome to Aurex Group’s quarterly update for the Greater China Reol Estote Investment market. In this issue we will be covering the major market events which have been impacting the movement of and opportunities for investment professionals, If you would like gain additional insight or request further inforrnation, please reach out ‘to our team below.

2020 — A Time to Adapt

The first quarter of 2020 hos seen many of our clients faced with a period of adoptqtion os their operations cope with the impact of the on their Real Estate portfolios across Greater China.

Many in the industry, including global institutional, private equity and asset management firms, have spent the first quarter dealing with disruptions from the eeronavirus outbreak. These have included mobilising work from home schemes or temporarily closing their operations to protect the health and welfare of their employees.

As a result. we have experienced a more conservative approach to hiring as employers have been more conscious of •the gddi•tiong’ COStS Of taking on headcount. extending recruitment processes until further clarity gained on the market has been a preference.

Nevertheless, amid the market uncertainty, Aurex Group is still seeing demand from clients Who are looking to fake advantage Of a slower period to connect with top talent in the industry. The Real Estate Investment market in Greater China is limited, and companies looking to build a hiring pipeline for upcoming months have already commenced. These businesses are tgking an opti mistic approach, foreseeing the mgrket rebounding, si to thgt of SARS in 2003.

For professionals. there has been interest from candidates intrigued to understand what opporåunities may be available in the current market. Many are still actively seeking new roles, with motivations changing from seeking new challenges to findi ng o stable platform given the recent disruptions.

QI Market Trends & Insight

Demand for Dealmakers

  • From o senior hiring perspective, there continues to be o demand in Greater Chino for candidates who are experienced dealmakers with a previous track record of running successful funds across the region with a core/ eore+ and value add approach.

  • In saturated market, sourcing deals remains challenging. Many investors are finding it difficult te identify attractive opportunities and deploy capital. Therefore, Aurex Group is experiencing higher demand for talent with regional experience. Asia-based funds previously focused on Greater Chino are looking to expand or increase their current presence in core markets such as Japan, Australia and Singapore. Some companies are looking to target emerging markets in Southeast Asia.

  • Candidates With experience in executing investments among property segments that tend to have c resilient tenant base in and out of cycles are in demand , This includes portfolios in senior living, student accommodation and healthcare.

Demand for Special Situation Investment Candidates

  • The-re in the market bankruptcies restructurings be 0th the given the evolving coronavirus situation. As a result, more companies will need to raise capital by borrowing high-yield debts or selling non-core assets. Consequently, special situation investment opportunities will increase and clients will be seeking talent with this expertise across all Levels in Greater Chino.

Demand for Greater Bay Area Experience

  • The Greater Bay Area (GBA) remains a location of interest for Real Estate funds in Greater China with many clients seeking to deploy capital within industrial, office and urban renewal projects. Investors still have confidence in the future of the GB,A with the belief that increased connectivity and gover nment incentives will help drive growth in the region. Albeit at a: slower pace than initially predicted.

  • For many investors, finding the right talent to -tap into the market and source attractive opportunities for investment can be time-inten give. Candidates with proven deal sourcing and investment execution experience in the SBA will be in demand going forward, Those with a strong understanding of regulatory matters and who hold an existing network With owners and operators within Rea Estate Win be especiany sought after.

Recommended Reading:

  • Price Waterhouse Coopers and Urban Land Institute, (2020) , Emerging Trends in Real Estate Asia Pacific 2020.

  • KPMG. (2020). Keys to Success in the Greater Bay Area – Third Annual Survey on Drivers for Growth.

Real Estate Investment Quarterly Review

Amy Chow

Senior Consultant

Invesment

amy@aurexgroup.com

Ben Watt

Managing Director

Partner

ben@aurexgroup.com

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