Emerging Market Real Estate Investment (eBook)

DAVID J. LYNN, PHD, is an institutional real estate investor, strategist, and portfolio manager with extensive experience in national and international markets. Currently, he is Managing Director, Head of the Research and Investment Strategy Group, and Generalist Portfolio Manager at ING Clarion Partners. In this capacity, he directs the firm's strategic and tactical investment decisions regarding investment portfolios. He is also a member of the Investment and Operating Committees, where he makes decisions on billions of dollars of new investments, portfolios, fund strategies, and dispositions. Lynn's theoretical work has yielded new approaches and analytical techniques in the areas of active portfolio management, market forecasting, financial distress, and emerging markets. He has published widely on the subjects of real estate investment, development, economics, and land use. Lynn has written or coauthored over seventy articles, internal investment and strategy papers, and three major books, including Active Private Equity Real Estate Strategy. He writes a highly regarded column called "Capital Trends" in National Real Estate Investor magazine and is frequently cited in the media for his views on the economy and the real estate industry. Lynn earned his PhD in financial economics from the London School of Economics, where he also earned a master of science specializing in finance. He holds an MBA from MIT's Sloan School of Management. TIM WANG, PHD, is Senior Vice-President and Senior Investment Strategist with the Research and Investment Strategy Group at ING Clarion Partners. Dr. Wang joined ING Clarion Partners in 2006 and has authored more than fifty internal and external real estate investment strategy and market research articles and book chapters. He is a frequent speaker at industrial conferences. Tim holds an MBA from New York University and a PhD from the University of Georgia.

Preface vii

Characterizing Emerging Market Real Estate x

China, India and Brazil x

Outline of the Book xvi

Note xvi

Disclaimer xvii

Acknowledgments xix

CHAPTER 1 Fundamentals of Real Estate Investment 1

Investing by Property Sector 3

Investing by Style 7

Investing by Phase 9

Asset Allocation 10

Notes 10

CHAPTER 2 Investing in International Real Estate 13

Why Invest in International Real Estate? 13

Risks in International Real Estate 22

Mitigating Country Risks 23

Notes 26

CHAPTER 3 China 27

Introduction 27

Overview of the Market Environment 29

The Real Estate Market 48

Property Sectors 56

Primary Markets 66

Secondary Markets 80

Investment Strategies 84

Notes 98

CHAPTER 4 India 101

Introduction 101

Overview of the Market Environment 102

The Real Estate Market 111

Property Sectors 115

Primary Markets 128

Secondary Markets 136

Investment Strategies 140

Notes 152

CHAPTER 5 Brazil 153

Introduction 153

Overview of the Market Environment 153

The Real Estate Market 171

Property Sectors 174

Primary Markets 200

Investment Strategies 203

Notes 209

APPENDIX A Country Risk 211

APPENDIX B Property Market Practice in China 213

Bibliography 217

About the Authors 219

Index 221