As Alan Miyasaki, head of real estate Asia acquisitions at Blackstone, sees it, both public and private markets work very well. In his view, scale matters in public markets. As an example, he cites Croesus Retail Trust which was acquired by Blackstone in 2017.

The property portfolio was “smallish” with all the assets located in Japan and traded at a discount to its net asset value for most of the time it was listed in Singapore. The only time investors in Croesus got the valuation was when Blackstone privatised the trust.

Similarly, Soilbuild Business Space REIT (SB REIT) was also undersized. “The entire value of debt plus equity was around $1 billion. It was too small to get analysts to follow it. So it did not really get as much exposure as it would have otherwise,” Miyasaki said in a recent interview.

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