{"id":258802,"date":"2021-12-02T20:42:41","date_gmt":"2021-12-02T12:42:41","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=258802"},"modified":"2022-08-15T15:03:21","modified_gmt":"2022-08-15T07:03:21","slug":"msci-sees-covid-driving-demand-for-real-estate-risk-data","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/events\/msci-sees-covid-driving-demand-for-real-estate-risk-data\/","title":{"rendered":"Global Capital, COVID-19 Drive Demand for Real Estate Market Information: MTD TV"},"content":{"rendered":"<div class=\"container-lazyload container-vimeo js-lazyload--not-loaded\"><a href=\"https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841\" id=\"652291852\" class=\"lazy-load-vimeo preview-lazyload preview-vimeo\" data-video-thumbnail=\"https:\/\/i.vimeocdn.com\/video\/1316275680-61b462cf00b5bb762acaca713a75fd9a35f2dddfb27556c8d559c958c6505347-d_295x166\" data-video-title=\"Mingtiandi Property Innovation Forum 2021: Global Capital and the Transformation of Asian Real Estate\" title=\"Play video &quot;Mingtiandi Property Innovation Forum 2021: Global Capital and the Transformation of Asian Real Estate&quot;\">https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841<\/a><noscript>Video can&#8217;t be loaded because JavaScript is disabled: <a href=\"https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841\" title=\"Mingtiandi Property Innovation Forum 2021: Global Capital and the Transformation of Asian Real Estate\">Mingtiandi Property Innovation Forum 2021: Global Capital and the Transformation of Asian Real Estate (https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841)<\/a><\/noscript><\/div>\n<p>&nbsp;<br \/>\nThe growing role of global capital in Asian real estate is reshaping the way the industry operates, as the growing importance of property as an institutional asset class boosts demand for information on returns as well as risk, according to market monitoring experts at MSCI.<\/p>\n<p>In an interview with Mingtiandi on Thursday, Varun Malik, who heads up the Manhattan-based information service\u2019s real estate client coverage for Asia Pacific, also tied the rise in demand for market information to changes wrought by the pandemic, as investors accustomed to steady rental returns registered a greater recognition of risk.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Copy of APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real Estate\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><script language='JavaScript1.1' src=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;ord=+ Date.now();dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/script><\/p>\n<p>\u201cThere has been a reduced level of appreciation for risk over the last five to 10 years,\u201d Malik said. \u201cI think there\u2019s been so much growth, that nobody\u2019s kind of looked in the rearview mirror to see what kind of risks are coming up. That\u2019s a key element.\u201d<\/p>\n<p>Malik noted that with COVID-19 having disrupted many industries, real estate asset owners are now more cognisant of potential tenant risks, as well as showing a heightened appreciation for sustainability concerns and changes driven by climate change.<\/p>\n<h3>Financialisation of Real Estate<\/h3>\n<p>MSCI, which earlier this year <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance-real-estate\/msci-buying-real-capital-analytics-for-950m\/\">agreed to buy property data provider Real Capital Analytics for $950 million<\/a>, has been diversifying its information services beyond its origins as a source of market data for listed equities, with providing a clearer view of the \u201cfinancialisation\u201d of real estate globally becoming a key part of its growing coverage of private markets.<\/p>\n<div id=\"attachment_255848\" style=\"width: 538px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-255848\" class=\"size-full wp-image-255848\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2021\/02\/Varun-Malik-MSCI-e1636897843376.jpeg\" alt=\"Varun Malik, Head of Real Estate Client Coverage, APAC, MSCI\" width=\"528\" height=\"439\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2021\/02\/Varun-Malik-MSCI-e1636897843376.jpeg 528w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2021\/02\/Varun-Malik-MSCI-e1636897843376-400x333.jpeg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2021\/02\/Varun-Malik-MSCI-e1636897843376-420x349.jpeg 420w\" sizes=\"(max-width: 528px) 100vw, 528px\" \/><p id=\"caption-attachment-255848\" class=\"wp-caption-text\">Varun Malik of MSCI<\/p><\/div>\n<p>\u201cAt MSCI, what we\u2019re essentially trying to do is be the lens through which asset owners, which is the capital providers, and asset managers, which are essentially the guys who deploy that capital, communicate with each other,\u201d explained Malik, who was speaking with Mingtiandi founder Michael Cole as part of the MTD TV Property Innovation Forum 2021.<\/p>\n<p>During the half-hour segment, which was sponsored by Yardi, Malik also talked about how property players are increasingly turning to third-party market data to inform their strategies, as well as offering a glimpse of his company\u2019s plans to help smooth interactions between global capital and the asset managers on the ground in key markets.<\/p>\n<h3>Risk Assessment<\/h3>\n<p>With persistent low interest rates reducing returns from fixed-income investments and other institutional standbys, the enhanced returns offered by real estate have made the industry an increasingly important source of opportunities for investors, and no longer just a means for fulfilling a social need, Malik explained.<\/p>\n<p>However, with the COVID-19 crisis having called into question how tenants use shopping malls, commercial offices and other assets traditionally seen as sources of steady returns, those in charge of investing large pools of money are looking for reliable information to help manage risk in these largely private markets.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/oxford-ivanhoe-kic-savills-on-singapore-india-markets\/\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"14 NOVEMBER 2023 conrad centennial Singapore\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>To that end, MSCI and property services firm Savills have taken a strategic stake in London-based Income Analytics, which provides rental default risk measures on commercial real estate income \u2014 information that is increasingly crucial for managers and capital providers.<\/p>\n<p>\u201cAs you seek to determine the volatility of future cash flows in a market that is still arguably in a state of flux, because of the massive volatility of cash flow over the last year, investors have realised they did not have the tools or the data to properly compare the riskiness of real estate rental income across assets, portfolios and regions,\u201d Malik said. \u201cAnd that is ultimately what we\u2019re trying to do through this investment in Income Analytics.\u201d<\/p>\n<h3>Climate Considerations<\/h3>\n<p>With sustainability a marquee issue in today&#8217;s corporate world, MSCI has devised climate change risk metrics across listed equities, fixed income and now private assets. In 2019 the firm acquired Carbon Delta, a Swiss research group specialising in climate change scenario analysis, in order to beef up its climate risk assessment capabilities. Carbon Delta had worked with the United Nations and 20 of the world\u2019s leading asset managers and owners to create a framework for climate-related financial disclosures.<\/p>\n<p>\u201cAll the participants, along with MSCI, developed scenarios, models, metrics and ultimately a risk-assessment tool to enable investors to assess the climate risk across their portfolios,\u201d Malik said.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mipim-asia.com\/?utm_source=mingtiandi&#038;utm_medium=barter_website&#038;utm_campaign=mipimasia2023\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"AR-607487_Mipim Asia_23_Banner Resize 780&#215;250\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>He expects climate risk to advance from a token portfolio metric to a \u201ckey driver of performance\u201d for fund managers in a short span of time.<\/p>\n<p>\u201cWe\u2019ve gone from a world of, well, there\u2019s investing and then there\u2019s ESG investing, to a world where it\u2019s just investing,\u201d Malik said. \u201cIf you look at the world five years ago there\u2019d be, in any IC paper across managers or asset owners, a one- or two-pager in the appendix about climate change risk. That has now become the leading topic among investors and managers when they\u2019re looking to deploy capital.\u201d<\/p>\n<h3>What\u2019s Ahead in 2022<\/h3>\n<p>With this year\u2019s online forums now concluded, Mingtiandi is organising a <a href=\"https:\/\/www.mingtiandi.com\/mingtiandi-2022-asia-real-estate-event-calendar\/\">series of MTD TV events in 2022<\/a> to bring together thought leaders from around the region and beyond to discuss trends affecting sectors including residential, logistics, REITs, data centres and office strategies.<\/p>\n<p>The schedule kicks off in March with the APAC Residential Investment Forum. Session topics will include multi-family investment, residential finance trends and sustainability in housing.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"container-lazyload container-vimeo js-lazyload--not-loaded\">https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841Video can&#8217;t be loaded because JavaScript is disabled: Mingtiandi Property Innovation Forum 2021: Global Capital and the Transformation of Asian Real Estate (https:\/\/player.vimeo.com\/video\/652291852?h=0af5380841)<\/div>\n<p>&nbsp; The growing role of global capital in Asian real estate is reshaping the&#8230;&nbsp;<a href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/msci-sees-covid-driving-demand-for-real-estate-risk-data\/\">Read&nbsp;More>><\/a><\/p>\n","protected":false},"author":9671,"featured_media":258804,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3456],"tags":[5382,3457,5359,6450,8380,8400,1783],"ppma_author":[8847],"authors":[{"term_id":8847,"user_id":9671,"is_guest":0,"slug":"christopher-caillavet","display_name":"Christopher Caillavet","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/500c291c35a85a2ad5827cf7c6d198e1?s=96&d=mm&r=g","user_url":"","last_name":"Caillavet","first_name":"Christopher","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/258802"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/9671"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=258802"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/258802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/258804"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=258802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=258802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=258802"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=258802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}