- As Asia Pacific enters the late stage of the economic growth cycle, real estate investors are increasingly emphasising asset diversification and stability of income as their criteria move beyond traditional yield-based performance.
- Alternative sectors such as data centres, multifamily residential and self-storage are gaining popularity among investors seeking income stability and higher returns, as well as a new dimension of enhanced returns from direct or indirect operational involvement.
- However, the relative immaturity of alternative assets in the region poses a challenge for investors seeking to conduct due diligence and appraisals of property values. Many types of alternative assets have a brief history as an investment class, meaning that transaction records are limited. Cashflow can often be opaque, making it difficult to benchmark rents, income and other operational data.
- This ViewPoint by CBRE Research and CBRE Valuation & Advisory Services explains the various challenges related to alternative asset valuation and provides guidance for investors seeking to understand approaches to appraising this complex asset class.
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