REIT ASIAPAC MAGAZINE REITASIAPAC AUGUST 2020 ISSUE | Page 11

SURVEY
RED: GPR/APREA Composite REIT Index | BLUE: MSCI AC Asia Pacific Index
source: GPR
2. INDUSTRIAL REMAINS THE
MOST ATTRACTIVE REIT SECTOR
properties close to major cities could have a higher and better
use as last-mile logistics facilities, according to JLL.
Q
In which REIT sectors are you interested to
invest?
The industrial sector was the top choice of Asia Pacific fund
managers for investment following amid the pandemic.
Fund managers particularly cited REITs with leanings toward
the logistics and data centre sectors as the most attractive
investment destinations in light of the coronavirus pandemic.
Office landed the second spot in the survey. Fund managers
say office REITs are good for “medium-term” investments.
Retail came in as the third most attractive REIT sector in
the survey, followed by hospitality. Some fund managers
particularly cited retail as a good “short-term” investment.
Retail REITs have been one of the most affected in Asia
Pacific with the pandemic accelerating the impact of
e-commerce. At the height of widespread restrictions in
March, data from Global Property Research showed that the
retail sector performance slumped by 31.9% while the hotel
industry fell 39.8%. Still, some retail malls have managed to
gain a new lease of life by being converted into warehouses,
or city fulfillment centres and the trend is seen to be gaining
momentum. As more people shop online and expect delivery
of goods within a few hours, so-called large-format retail
3. AUSTRALIA AND JAPAN
REITS MOST ATTRACTIVE TO
INVESTORS IN ASIA PACIFIC
Q
In which countries are you interested to invest?
Fund managers heavily favoured Australian REITs for
investment amid the global pandemic with Japan a close
second.
Aside from being known as safe haven economies for REITs,
Ascott Residence Trust also noted that these two countries
were among the first to ease restrictions, and thereby
provided positive sentiment for hospitality REITs in both
jurisdictions.
“In Australia and Japan, domestic travel campaigns have been
rolled out to encourage locals to travel, and in Australia and
Singapore, international borders are set to gradually reopen
with the formation of travel bubbles. These developments
are positive for the tourism and hospitality sectors,” Ascott
said in a statement to unitholders.
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