The performance of non-listed opportunity real estate funds in China

IF 1.6 Q3 BUSINESS, FINANCE
Graeme Newell, Muhammad Jufri Marzuki, Martin Hoesli, Rose Neng Lai
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引用次数: 0

Abstract

Purpose Opportunity real estate funds are an important style of real estate investing for institutional investors seeking nonlisted real estate exposure. Importantly, institutional investors have sought exposure to the China real estate market, often via opportunity real estate funds. This has been by a pure China opportunity real estate fund (100% China opportunity real estate) or by a pan-Asia opportunity real estate fund where China opportunity real estate was part of this pan-Asia opportunity real estate portfolio. Using two bespoke China opportunity real estate indices developed by the authors, this paper aims to assess the risk-adjusted performance and portfolio diversification benefits of China opportunity real estate in a mixed-asset portfolio over 2008–2020. It also highlights critical issues for institutional investors going forward to factor into their real estate investment decision-making for effective China real estate exposure. Design/methodology/approach This paper develops two bespoke China opportunity real estate fund performance indices to assess the risk-adjusted performance and portfolio diversification benefits of China opportunity real estate funds in a mixed-asset portfolio over 2008–2020. An asset allocation diagram is used to assess the role of China opportunity real estate in a mixed-asset portfolio via both the non-listed and listed real estate investment channels. Findings Over 2008–2020, China opportunity real estate exposure via pan-Asia opportunity real estate funds were seen to outperform pure China opportunity real estate funds. In both formats, China opportunity real estate funds were seen to have a significant role in a China mixed-asset portfolio across most of the portfolio risk spectrum; particularly compared to listed real estate exposure in China. On-going issues regarding real estate risk management in China will take on increased importance for institutional investors seeking China real estate exposure. Practical implications Opportunity real estate funds are an important style of real estate investing, often used by institutional investors to gain non-listed real estate exposure in a developing real estate market. This style of real estate investing has been popular with institutional investors seeking exposure to China real estate as part of the China economic growth dynamic. The results of this research highlight the importance of opportunity real estate investing in China, both via a pure China opportunity real estate fund and via a pan-Asia opportunity real estate fund. Based on this empirical analysis, China opportunity real estate exposure is seen to be more effective via a pan-Asia opportunity real estate fund than a 100% China opportunity real estate fund. A range of practical China real estate investment issues are also highlighted for the effective delivery of China real estate exposure for institutional investors going forward; this particularly relates to the on-going risk management for real estate investment in China. Originality/value This paper is the first empirical research analysis of the risk-adjusted performance of China opportunity real estate and its role in a mixed-asset portfolio. Using bespoke China opportunity real estate fund indices developed by the authors, this research enables empirically-validated, more informed and practical opportunity real estate investment decision-making regarding the strategic role of China opportunity real estate in an institutional investor's portfolio. It also highlights the importance of various facets of real estate risk management in China going forward.
非上市机会型房地产基金在中国的表现
机会型房地产基金是机构投资者寻求非上市房地产投资的一种重要投资方式。重要的是,机构投资者一直在寻求投资中国房地产市场,通常是通过机会房地产基金。这是由一个纯粹的中国机会房地产基金(100%的中国机会房地产)或泛亚机会房地产基金,其中中国机会房地产是泛亚机会房地产投资组合的一部分。本文利用作者开发的两个定制中国机会房地产指数,旨在评估2008-2020年中国机会房地产在混合资产组合中的风险调整绩效和投资组合多元化收益。这也凸显了机构投资者未来在进行房地产投资决策时需要考虑的关键问题,以获得有效的中国房地产敞口。设计/方法/方法本文开发了两个定制的中国机会房地产基金绩效指数,以评估2008-2020年中国机会房地产基金在混合资产组合中的风险调整后绩效和投资组合多元化效益。通过资产配置图,通过非上市和上市房地产投资渠道评估中国机会房地产在混合资产组合中的作用。2008-2020年期间,泛亚机会房地产基金对中国机会房地产的投资表现优于单纯的中国机会房地产基金。在这两种形式中,中国机遇房地产基金在中国混合资产投资组合的大部分风险范围中都扮演着重要角色;特别是与中国上市房地产的风险敞口相比。对于寻求中国房地产投资的机构投资者来说,中国房地产风险管理的持续问题将变得越来越重要。机遇型房地产基金是房地产投资的一种重要形式,是机构投资者在发展中房地产市场获得非上市房地产投资机会的工具。这种房地产投资方式受到机构投资者的欢迎,他们希望投资中国房地产,将其作为中国经济增长动态的一部分。本研究的结果强调了在中国投资机会房地产的重要性,无论是通过纯粹的中国机会房地产基金还是通过泛亚机会房地产基金。基于这一实证分析,通过泛亚机会房地产基金投资中国机会房地产比100%投资中国机会房地产基金更有效。本文还重点介绍了一系列实际的中国房地产投资问题,以便为未来的机构投资者有效地提供中国房地产风险敞口;这尤其涉及到中国房地产投资的持续风险管理。本文首次对中国机遇地产的风险调整绩效及其在混合资产组合中的作用进行实证研究。利用作者开发的定制中国机会房地产基金指数,本研究使中国机会房地产投资决策在机构投资者的投资组合中的战略作用得到了经验验证,更加明智和实用。它还强调了未来中国房地产风险管理各个方面的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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