www.seekingmedia.com.au/news.php?newsid=239&PHPSESSID=4 -
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Published on: 12/12/2007
Last Visited: 3/23/2008
Commenting on the report, PIR managing director Richard Cruickshank, said the Australian REITs industry had continued to grow at compound annual growth rate exceeding 20%, with institutional allocations from superannuation and investment funds still holding around 8%-10%.
"PIR believes there is a strong case for a 15%-20% allocation," Mr Cruickshank said."However, this would require industry participants to row in the same direction and send a consistent message to investors and investment managers."
Australia's top 10 fund managers collectively control 57% of the overall REITs industry with Westfield controlling almost 14% on its own.That top 10 is collectively responsible for real estate assets totalling $203.5 billion, an increase of 27% on last year's figure of $159.7 billion.
Mr Cruickshank said Australia remained the most securitised property market in the world, with about 70% of listed and unlisted property assets already securitised.
"On the global property investment market only 15% (US$2.6 trillion) of investment grade commercial property is owned by property funds and REITS, so rocket science is not required to determine where the future opportunities may lie," he said.
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"This clearly indicates the continuation of the swing towards unlisted retail funds, away from syndicates, that has been increasingly prevalent for the past three years," Mr Cruickshank said.