Although RE private credit in the APAC remains at an early stage when compared to the US and Europe, the report finds that there is “significant headroom” for growth. With fundraising accelerating in recent years, a funding gap has appeared, driven by the refinancing of low-cost debt and more selective bank lending. This fuels demand for non-bank capital across core-plus, value-add and transitional strategies.
Borrowers are turning to private credit for faster execution and more tailored solutions amid tighter financial conditions and regulatory constraints, finds a report by CapitaLand Investment (CLI).
The team at CLI consisting of Tran Hanh Lin, Wayne Teo, Joshua Pua, Arjun Pandit, Rohan Ghosh and Abby Jie note in their report, titled ‘The rising tide of Asia-Pacific (APAC) real estate private credit’, that real estate (RE) private credit within the APAC is emerging as a key growth segment supported by the region’s rapid urbanisation, rising refinancing needs, and evolving capital requirements.
