The dynamics of the public markets are insightful as investors attribute a significant discount to publicly traded companies relative to the value of the real estate they hold. Personally, I am more inclined towards the sentiment of the public market investors who are assuming values will fall on the back of Brexit woes on the occupier side, and the interest rate environment should, in theory, push yields higher on the back of an inflationary environment and a weakening currency. Time will tell. For now, values will hold up better than expected, driven by low interest rates and a strong inflow of Chinese capital.
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