• More investors in Asia Pacific are now lending against assets rather than taking equity positions due to a combination of sharp increases in pricing, historical low yields, lack of investible stock and government initiated lending curbs.
  • While taking a lender position in a project’s or asset’s capital stack can provide an investor with a degree of protection stronger than that if they were to invest in equity, CBRE nevertheless believes investors must approach debt strategies with caution.
  • Extensive market analysis and due diligence are necessary to locate the choicest opportunities, while considerable expertise in structuring financing is also of critical importance.