Strength Through Diversification: Opportunities across Asia Pacific

FIGURE 5: MANUFACTURING AND LOGISTICS PRIME YIELDS

• Some countries present foreign currency exchange risk also but where companies are seeking to establish complementary facilities in nearer-to-home locations, there could be the possibility of contracting leases on rents denominated in alternative currencies or pegging to non domestic inflationary metrics (for example, in EUR or USD rather than the domestic currency of the country). • This is also an opportunity to consider the risks to existing assets, whether through the potential change in business circumstance for the incumbent tenant (such as, as an OEM supplier to a primary car manufacturer, will their products remain needed as the industry moves towards EVs and away from internal combustion engine vehicles?) or through the future appropriateness of the real estate asset (will older buildings remain operationally appropriate if a tenant implements greater levels of automation?) This could help to identify opportunities to either divest of these types of assets or start devising strategies for asset management of these buildings to remain relevant to occupiers, particularly where there are opportunities to upgrade the sustainability credentials of the buildings.

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STRENGTH THROUGH DIVERSIFICATION: OPPORTUNITIES ACROSS ASIA PACIFIC