Whilst the recent sharp rise in interest rates has been negative for real estate equity strategies, it is favorable for real estate debt strategies. Higher base rates and credit spreads combined with more caution among commercial banks, have contributed to an attractive environment for private credit strategies. Before the GFC only very few Institutional investors would have an allocation to commercial real estate debt. But the void left by commercial banks following the GFC has led to a structural growth of so-called non-bank lenders and with that we have witnessed a steady growth of dedicated real estate debt funds. Today private real estate credit is playing an increasingly important role in institutional portfolios, due to its income profile and loss protection characteristics. It offers compelling risk adjusted returns and depending on the risk appetite, can even compare favorably to value-add equity strategies.

During this panel discussion, a clear framework of the real estate debt universe will be provided, the panel members will discuss which debt strategies they favor as well as discuss which markets in Asia Pacific currently offer the better opportunities.