The performance of non-listed opportunity real estate funds in China

Newell, Graeme; Marzuki, Muhammad Jufri; Hoesli, Martin; Lai, Rose Neng

doi:10.1108/jpif-09-2021-0075

Cited by 2 publications

(1 citation statement)

References 26 publications

(42 reference statements)

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“…A recent focus in non-listed real estate funds management research has been the role of investment style in the investment vehicle chosen by the institutional investor to achieve this real estate exposure; particularly the effectiveness of core vs value-add vs opportunity real estate (e.g. : Bollinger and Pagliari, 2019; Fisher and Hartzell, 2016; Gang et al , 2020; Hoesli et al , 2022; Newell et al , 2023; Pagliari, 2020; Shilling and Wurtzebach, 2012). The real estate fund style is particularly important as it has implications for the real estate funds' expected returns, risks, liquidity and holding periods.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of the COVID-19 crisis on global real estate capital flows

Newell

Marzuki

2023

JPIF

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PurposeCOVID-19 has had a significant global impact at many levels, including an impact on global real estate capital flows. This paper examines the impact of COVID-19 on global real estate capital flows over 2019–2022 to clearly articulate the extent of this impact on global real estate capital flows across regions, countries, major cities, real estate sub-sectors and by major real estate investors. Drivers of these global real estate capital flow changes are also identified. The strategic real estate investment implications of this impact are highlighted, as well as the implications going forward concerning the global real estate strategies for the real estate portfolios held by institutional investors.Design/methodology/approachTo assess the impact of COVID-19, the Real Capital Analytics (RCA) database of global real estate transactions over 2019–2022 is used to drill-out critical details on commercial real estate transactions to explore specific trends in global real estate capital flows in this period of the COVID-19 crisis. This includes real estate capital flows to specific regions, countries, cities, real estate sub-sectors as well as the role of major real estate investors.FindingsThe impact of COVID-19 is clearly shown with the major decline in global real estate capital flows in 2020, with a strong recovery in 2021. Reduced levels of real estate capital flows in 2022 reflect different risk dynamics, where 2022 has seen investors move on from the COVID-19 environment. In 2022, the risk of COVID-19 for real estate has been replaced by global real estate risk factors such as inflation concerns, geopolitical tensions, economic growth concerns, increased cost of debt issues and supply chain issues. This sees COVID-19 now rated as only the 6th most important risk factor in real estate investment decision-making for real estate investors in the Americas, Europe, Middle East and Africa (EMEA) and Asia–Pacific.Practical implicationsThis research has clearly shown the extent of the impact of COVID-19 on global real estate capital flows, as well as identifying the drivers of these real estate capital flow changes. It highlights that real estate investors have moved on and are now prioritising new risk factors ahead of COVID-19 risk. These critical risk factors reflect more recent financial, economic and geopolitical issues, which are key issues in real estate investment decision-making going forward. Investors need to structure these new risk factors into their real estate investment decision-making for the ongoing management of their domestic and international real estate portfolios.Originality/valueThis paper is the first published empirical research analysis of global real estate capital flows during the COVID-19 crisis. This research provides major insights on real estate investment decision-making during this crisis and the strategic changes seen in acquiring real estate portfolios in response to this major global crisis. The change in real estate risk priorities in 2022 as real estate investors move on from the COVID-19 environment is also identified and is clearly reflected in the 2022 global real estate capital flows.

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Section: Literature Reviewmentioning

confidence: 99%

The impact of the COVID-19 crisis on global real estate capital flows

Newell

Marzuki

2023

JPIF

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The strategic importance of Australian farmland as a property sector for institutional investors

Newell,

Marzuki

2024

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PurposeFarmland is an important property sector that has attracted the attention of institutional investors globally in recent years. This paper examines the risk-adjusted performance and portfolio diversification benefits of Australian farmland in a portfolio over the eight-year period of Q2:2015–Q2:2023, highlighting the unique property management dimensions to this property sector for its effective role in an institutional investor's property portfolio.Design/methodology/approachUsing the quarterly ANREV Australian farmland index over Q2:2015–Q2:2023, the risk-adjusted performance and portfolio diversification potential of Australian farmland is assessed. Constrained mixed-asset portfolios are used to assess the potential added-value role of Australian farmland in a mixed-asset portfolio. Analyses are also done for the farmland sub-sectors of annual farmland and permanent farmland.FindingsAustralian farmland is seen to show strong risk-adjusted performance but at a much higher risk level than that seen for direct property. Diversification benefits from Australian farmland are also evident, with an important role by Australian farmland seen in the mixed-asset portfolio. Specific farmland property management strategies are identified for the effective inclusion of farmland in an institutional investor's property portfolio, including the potential benefits towards net zero carbon strategies.Originality/valueThis is the first research that provides an independent empirical examination of the strategic importance of Australian farmland property for institutional investors using the institutional investment-grade ANREV Australian farmland database, from both an investment and environmental perspective. The unique property management implications for Australian farmland property are also highlighted, including the potential role of Australian farmland in net zero carbon strategies by institutional investors.

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The performance of non-listed opportunity real estate funds in China

Cited by 2 publications

References 26 publications

The impact of the COVID-19 crisis on global real estate capital flows

The impact of the COVID-19 crisis on global real estate capital flows

The strategic importance of Australian farmland as a property sector for institutional investors

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