【Major Asset Class: Commercial Real Estate - Retail】

During the study of industry reports, a consensus has emerged in the market: retail commercial real estate is very likely to become a standout asset class in the coming period. Everyone understands that retail commercial real estate (essentially Shopping Malls) has suffered greatly from the impact of e-commerce over the past decade, leading to poor performance of such properties, and as a result, there has been almost no new supply of retail properties in the market.

Currently, the Yield of European retail properties is at a historical high.

(Here, it is important to educate everyone and please do not misunderstand the Yield data used in the investment field. A high Yield does not simply mean that the actual return on this type of asset is good, but rather that the market has high risk-return requirements for this type of asset. In other words, this means that it is currently not an asset that is highly favored by the market.)

However, precisely because the Yield of European retail properties is at a historical high, from the perspective of "mean reversion," institutions are likely to judge that the valuation and pricing of this type of asset may be at the stage of bottom reversal.