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China

Making sense of Brexit in Asia Pacific

JLL executives comment on implications for real estate investors and occupiers in  the region


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​SINGAPORE, 4 July 2016 - In the aftermath of the UK deciding to exit the European Union, the markets are volatile and the value of the pound has declined sharply. With considerable uncertainly and no real precedent, Asia Pacific real estate investors and corporate occupiers are looking to mitigate risk.

According to JLL experts, Brexit could bring short term opportunity for international investors although market sentiment will remain cautious. In Asia Pacific, local occupiers and multinational companies serving domestic economies will help to insulate the region from volatility.

JLL Asia Pacific CEO Anthony Couse says: “The repercussions are being felt around the globe and we are likely to see a temporary slowdown in demand from Asian occupiers with operations in the UK. However, in the long term, once clarity emerges about the UK’s exit negotiations, we expect a resumption in confidence.

“For property markets, there will be a correction but that should be followed by an upturn as opportunities re-emerge in core markets and the benefits of a weaker sterling are recognised. As the political and economic situation in the UK continues to unfold, we believe that most Asia Pacific investors and occupiers will take time to digest the implications before taking medium to long-term decisions.”

Alistair Meadows, head of JLL’s International Capital Group, Asia Pacific, says: “There remains a substantial weight of capital ready to be deployed from Asia into international investments. The short term effect of Brexit is likely to be that this Asian capital will potentially seek opportunities closer to home, in markets that are comparable in transparency to London, such as Sydney.

“However, for long-term institutional Asian investors, London will most likely continue in its position as one of the world’s foremost investment destinations. Indeed post Brexit market volatility may create attractive buying opportunities in the UK for Asian investors in the next six to 12 months.”

Dr. Megan Walters, head of research for Asia Pacific Capital Markets, JLL, says: “It is possible we may see a short term hold up of some Asia Pacific deals, involving funds containing a high proportion of European based investors. However, the weight of global capital is such that any gap left by European investors will be rapidly filled by other capital sources.”

For more information, download our report here​.

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​About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, www.jll.com

JLL has over 50 years of experience in Asia Pacific, with over 33,000 employees operating in 92 offices in 16 countries across the region. The firm won 15 awards at the International Property Awards Asia Pacific in 2016 and was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards. www.jll.com/asiapacific  

​In Greater China, the firm was named ‘Best Property Consultancy in China’ at the International Property Awards Asia Pacific 2016, and has more than 2,200 professionals and 14,000 on-site staff providing quality real estate advice and services in over 80 cities across the country.  www.joneslanglasalle.com.cn​​​​​​​