Early movers position for the best deals at Cityscape Asia 2009

Forget the highly leveraged deals, speculative developments, and reliance on rising capital values, it’s back to basics for the Asian real estate market for the next year said investment experts at the opening day of Cityscape Asia 2009 in Singapore today.

More than 3,000 real estate developers, investors and regulators are expected to attend the annual property exhibition and conference over 19, 20 and 21 May at the Singapore International Convention and Exhibition Centre.

Speaking at a panel discussion on the impact of the global financial downturn on the Asian real estate sector, Blake Olafson, Head of Asia Real Estate Group, Arcapita Pte Ltd said the industry was paying a lot more attention to the basics.

“If you’re a pension fund manager, that’s what you’ll do – not suddenly try to become a real estate developer in some Tier 3 city in China. There’s a greater sense of realism in the market, and a return to looking at fundamental cash flows, not just internal rate of return deals,” Mr Olafson said.

The ‘back to basics’ approach includes a focus on making existing assets work harder. “There’s a lot more emphasis around true asset management – a shift towards hiring third party facilities managers and much more effort is going into tenant retention strategies. Before the downturn the focus was on building development, now asset management has become a lot more important,” he said.

Agreeing that the industry was going back to basics, John Evans, Managing Director of Tractus Asia, said, “Looking at it from a global economic perspective, the Asian Real estate market had become a market where everyone was trying to get in, everyone was becoming a property developer.”

Players in the industry are now going back to their core competencies and this, combined with tighter credit conditions is driving a ‘flight to quality’ and focus on assets that generate cashflows from day one.

“The market place is giving investors more and higher quality opportunities. A couple of years ago we were really struggling to find viable deals. The availability of good quality assets is better than it was two years ago,” said Blake Olafson.

Deal making is back on the agenda at Cityscape with over 100 VVIP institutional investors attending the event, and the addition of new interactive elements such as Open Discussion Forums, country investor round tables and the Investors & Developers Networking Reception.

A strong contingent of regional developers including those from Vietnam, Cambodia, Angola, Australia, Thailand, Malaysia and Indonesia are showcasing their properties at Cityscape Asia. Confirmed exhibitors include Mah Sing Group, EPAD, RS Capital, East Ledang, Danga Bay, Mulpha, NASA TTDI, Camko City, and Iskandar Investment Berhad, the catalytic developer of Iskandar Malaysia which is backing up its successful foray at Cityscape Abu Dhabi with the opportunity to access South East Asian and Chinese investment at the Singapore event. They will also come together during the exclusive Cityscape Asia Investors & Developers Networking Reception to forge international relationships and discuss business and investment issues.

Cityscape Asia
Cityscape Asia - part of the world's largest business-to-business real estate event brand - is an annual exhibition and conference focusing on all aspects of the real estate development cycle. The three day event will run from 19 – 21 May 2009 at the Singapore International Convention and Exhibition Centre (Suntec Singapore).

Top deal-makers from leading developers, banks, institutional investors and investment authorities, as well as senior officers from foremost private equity funds and investment advisory firms will gather at Cityscape Asia to discuss key issues and investment opportunities.

Conference highlights include: surviving the global financial crisis; the future for real estate funds; Asian REITS; markets to invest in for long-term growth and returns; country spotlights in troubled times; the Asian retail decade; and green investments. Cityscape Asia is an extension of the phenomenally successful Cityscape Dubai exhibition, organised by IIR Middle East, which also include Abu Dhabi, India, Saudi Arabia, Russia, USA and Latin America.

UK-based Scala Land Group is a Gold Sponsor at Cityscape Asia. Scala Land Group presents overseas investors with alternative opportunities to buy land in the UK. CNN is the international broadcast partner.

For more information about Cityscape Asia 2009 and related events, please visit: www.cityscapeasia.com