Excerpts from Mark Mobius’s viewpoint on the realty market
In an Asia Pacific Real Estate Organization (APREA) event held in December 2017, Mark Mobius, Executive Chairman, Templeton Emerging Markets Group was welcomed by the chairman, Neel Raheja.
APREA is a non-profit organization that advocates property investment in the Asia Pacific Region. With prominent pension, insurance and sovereign funds, investment managers and family office platforms as members, APREA focuses on cross-border real estate investment in all sectors, styles and quadrants. The not-for-profit aims to help pioneer and grow investment markets in association with the government. It looks forward to re-fabricating ground rules and aid members connect to cross-border commercial opportunities.
Fostering an informed, efficient and transparent marketplace, the event witnessed multiple inputs from Mark Mobius. An emerging fund manager, Mark had a candid conversation with Vishal Kampani, MD, JM Financial Ltd. With a market experience of more than 25 years, he made some striking revelations that helped the members gain a better understanding of the current market scenario.
Mobius showcased his love for real estate and explained why he preferred to invest in equities. Saying no to Bitcoin investment, he named India and Africa as the two emerging markets. With high hopes from India, he expects the Indian stock to double in the next 5 years.
Explaining that the demand for commodities will only go up, he finds REITs very relevant. Also, he has a big grudge against completed assets not being maintained, and believes that maintaining them is the key to getting good valuations.
The evening also witnessed a panel discussion on Indian REITs with excellent participation from industry stalwarts. Led by Gautam Mehra, Leader – Tax and Regulatory, Pricewaterhouse Coopers India, the panellists included V Hari Krishna, Director – Real Estate Investments, India, Canada Pension Plan Investment Board (CPPIB), Ranganath Char, Managing Director, JM Financial, Real Estate, Sanjay Dutt, CEO India Operations & Private Funds – Ascendas-Singbridge.
The evening concluded with Neel Raheja thanking the audience for a fruitful interchange of ideas.