Franklin Templeton focused on China, Hong Kong property sectors
Company targets well-capitalised, sound developers with significant exposure to tier-1 cities
Franklin Templeton Investments, one of the world’s largest asset management groups, is to focus its Asia real estate investments on the China and Hong Kong residential sectors, optimistic the region’s long-term housing demand will remain strong, despite the slowing economy.
Wilson Magee, director of Franklin’s global real estate and infrastructure securities, described China’s residential sector as on a rising tide.
“We are interested in well-capitalised, sound developers who have significant exposure to tier-1 cities,” he said.
But he stressed the market is still immature, and conditions vary from city to city.
“Clearly there is tremendous supply in some tier-3 and tier-4 cities, so you need to pay attention to particular supply-demand trends.
Clearly there is tremendous supply in some tier-3 and tier-4 cities, so you need to pay attention to particular supply-demand trends... you have to pick your spots
“You can’t look at China as one place to invest to be successful, you have to pick your spots,” said Magee, who manages US$1 billion of global real-estate securities.