Investor Perspectives Podcast

JLL Asia Pacific
  • 0.0 (0)
  • INVESTING
  • MONTHLY SERIES

A new decade is already delivering new challenges and opportunities alongside inevitable complexities. How should commercial real estate investors respond? Are we seeing an acceleration of trends that were forming before the COVID-19 pandemic? What opportunities will emerge from dislocation and distress in the market? How are capital structures evolving? We dissect real estate investment trends developing across Asia Pacific, country-by-country, and sector-by-sector. Join us. Listen in. For more expert perspectives and research to help you take on whatever comes next, visit us at www.jll.com/conversations.

See All

  1. EPISODE 3

    Why COVID-19 is accelerating corporate sale-and-leaseback activity

    Corporate finance heads are increasingly turning to their existing real estate as a source of liquidity in the uncertain economic environment. Sale-and-leaseback deals – where companies sell their real estate, then lease it back from the new owner – have been on the rise in recent years. But there has been a greater focus on them in recent months as the global pandemic sent companies hunting for strategies that boost equity. In this podcast, our host, Art Patnaude, has a dialogue with JLL’s Regina Lim, Head of Capital Markets Research, Asia Pacific, speaking to us from her home office in Singapore. The topic at hand - Why is COVID-19 accelerating corporate sale-and-leaseback activity. In the last four years, there has been a 50 percent increase in sale and leaseback deals in Asia Pacific, with growth three times faster than the overall investment volumes in the region, according to JLL data. There was US$12 billion of such deals in 2019 alone.  Regina explains why this rise is set to continue, “The economic uncertainty is forcing businesses to think about flexibility and agility. The benefits of unlocking liquidity through sale and leasebacks is even more obvious. Owners can use the extra capital to pay down debt, reduce interest expense, or reinvest to drive the next stage of growth.” “COVID-19 has been like a reset, forcing a lot of companies to re-examine the way they deploy their capital to get the best return,” confirms Regina. Large supermarket and retail chains with industrial property on their books are top among those considering sale and leaseback strategies as they reassess strategies. “Traditionally Asian businesses have preferred to own a property over leasing it but this is gradually changing as asset prices continue to increase," says Regina. “We're seeing a lot more activity from niche players like family offices and private equity funds who are under invested in Asia Pacific real estate and value stable income generating assets.“ That trend will continue through and beyond COVID-19.

    8 min
See All Season 3 (1)

About

A new decade is already delivering new challenges and opportunities alongside inevitable complexities. How should commercial real estate investors respond? Are we seeing an acceleration of trends that were forming before the COVID-19 pandemic? What opportunities will emerge from dislocation and distress in the market? How are capital structures evolving? We dissect real estate investment trends developing across Asia Pacific, country-by-country, and sector-by-sector. Join us. Listen in. For more expert perspectives and research to help you take on whatever comes next, visit us at www.jll.com/conversations.

Information