31 October 2011 — A recent survey of major Asian real estate funds and companies, both public and private, conducted by The Asia Pacific Real Estate Association (APREA), suggests that exposure to European banks is very low, providing reassurance to investors against a backdrop of turbulence in Europe.
APREA, the leading Asian industry association which represents and promotes the real estate asset class, surveyed approximately 100 real estate funds and companies across the region and asked them about their exposure to European banks. A significant majority have no European bank debt at all. For those with any, the limit of those surveyed tends to be around 5% of total debt facilities, with a handful having exposure of around 15%, and with very few respondents saying their European debt exposure was any higher than that.
Peter Mitchell, Chief Executive Officer of APREA said, “There has recently been some speculation about the extent to which Asian real estate might be exposed to borrowings from European banks and therefore the extent to which there might be contagion from the ongoing uncertainty in Europe. We recognised that investors in Asia may be concerned and felt that it was important to establish a clearer picture on the exposure to European banks amongst Asian real estate funds and companies. It is reassuring to see the results and we hope that it helps investors to retain their confidence in this sector.”
About APREA:
APREA is a non-profit industry association that works to encourage greater investment in the real estate sector in Asia Pacific through the provision of better information to investors, improving the general operating environment, encouraging best practices and unifying and strengthening the industry.
APREA’s mission is to:
- Promote the real estate sector in the Asia Pacific region to domestic and foreign investors
- Develop a unified and powerful professional industry body, and
- Represent the sector to governments and regulators to improve the commercial operating environment for members
Its membership comprises real estate companies, listed real estate trusts, unlisted property funds, investment managers, investment banks, property securities fund managers, institutional investors, real estate consultants, corporate advisors, stockbrokers, investment advisors and universities.
The APREA Institute, APREA’s education and training arm, provides the foundation for raising standards in the industry through the provision of practical and applied training programs. Its Certificate of Real Estate Investment Finance program is the only course of its kind in the region to be both developed and delivered by industry practitioners.
APREA’s achievements in education and information dissemination, and focus on improving the general real estate operating environment, have firmly entrenched it as the leading representative body for the industry in the region. In particular, its achievements in driving regulatory improvements within the listed real estate trust sector extend beyond existing markets and pave the way for the emergence of new markets in other Asian countries.
APREA membership is the gateway to a network of the industry’s most influential decision makers and provides the opportunity to influence and participate in the development of the real estate markets in Asia.
For additional information on APREA, please visit www.aprea.asia
