The rise of Asia Pacific’s infrastructure asset class – The Property Chronicle
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The rise of Asia Pacific’s infrastructure asset class

The Economist

Inching toward a multi-layered future

China’s highly anticipated REIT pilot programme finally came to fruition in June, with the listing of the country’s first batch of nine REITs. Packaged in a mutual fund structure, the initial C-REIT form are backed mainly by infrastructure assets, judiciously defined and situated in key economic zones that have been earmarked by authorities to spearhead the country’s recovery from the pandemic.

With China’s new offerings, there are now an estimated 40 infrastructure-backed offerings listed across the region, securitised in various structures with a market capitalisation of about US$90b. While this is dwarfed when seen in relation to the value of the region’s development needs, the significance of C-REITs cannot be underplayed.

The listings in Asia’s largest economy add a compelling dimension to the real assets sector in the region. Given the sheer size of China’s infrastructure market, its pilot programme for REITs is a prelude to a market that could eventually rival that of the US. According to S&P, the securitisation of just 1% of such assets could create an over US$200bn market.

The Economist

About Sigrid Zialcita

Sigrid is the Chief Executive Officer of the Asia Pacific Real Estate Association (APREA). Based in Singapore, she is responsible for overseeing the strategic direction, initiatives and operations of the association across the Asia-Pacific.

Articles by Sigrid Zialcita

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