Internal research by AAA, an alternative investment advocacy group, supports the Jones Lang LaSalle findings which show that investment volumes have increased by 11.1 per cent in August 2011, compared with August last year. Targets for the year as a whole are for some $100 billion of deals to be completed in the Asia-Pacific region, the report explained.
Jones Lang LaSalle’s head of capital markets for the region, John Talbot, said, “Investors who are interested in diversification of their portfolios are likely to be attracted to real estate in the region, based on cash flow from rent with the potential to keep pace with inflation. We have seen a series of institutional investors increase their allocations to real estate, sustaining market volumes.”
AAA’s analysis partner, Anthony Johnson, said, “It’s the same story we are hearing from those involved in several different alternative asset classes at the moment.
“Investors are eager to put their money into safer funds and investment opportunities to make sure their cash is not tied too closely to the equity markets.”
There were a large number of deals in Australia, where buyers from markets including Canada, the US and Switzerland looked to buy up property because of its strong links to Asia. Domestically, China was the largest dealmaker in the real estate market, with over $5 billion of deals so far.
AAA claims that investment in alternative asset classes that make the most of the growing Asian economies are a strong option for those looking to diversify. Mr Johnson said, “There are several investment opportunities that are well placed to make the most of China’s and India’s booming economies.
“Real estate is one, but forestry is another. Investment through firms like Greenwood Management, which runs plantations in Brazil, help to provide Asia with the raw materials they need for growth, while helping protect the world’s resources for generations to come.”
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The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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