You're watching...
Prudential Global Real Estate Fund Manager Marc Halle on how investors can gain from real estate in emerging markets such as Brazil.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Market picks up here at home more of their other real estate opportunities brewing abroad -- Cali is Prudential global real estate fund portfolio manager.
He says it's all about the emerging markets right now but the way you play them does not have to be in kind of frightening emerging names right.
Sure of yeah there's there's lots of opportunities to play real estate investments around the world.
Now as we talked earlier realistic to local market business it's about supply and demand in those markets.
And there's ways to play developed markets emerging markets but you can invest in emerging markets directly in countries like Brazil or.
Preferably in countries like Hong Kong or Singapore we can access the emerging market.
Brazil why Brazil and I know everybody talks about how the Olympics are coming there and it it had a strong currency and people are excited about -- But is there something about it that you particularly like -- we haven't mentioned shore -- such a great country right now it's the world's fifth sixth largest economy.
It's growing great natural resources grade out of agriculture.
Great commodity -- look when you talk to Intel which has reporting after the bell Intel will tell you.
That it's their second largest market right now where people are buying their PCs for the first time and it's become pretty significant there.
Well as opposed to the US there unemployment is around five sub 5%.
Demographically.
It's a great young working population.
With people wanna work in a productive economy so what do -- -- to capitalize on the well we really like the retail stocks in the market.
In the retail world you've got mall developers and owners companies like a BR malls.
Great access to this major markets -- some problems the -- the world they're buyers their owners developers there's consolidation opportunities.
You're seeing stocks for you seeing double digit earnings growth -- the ability to raise rents double digit you don't see that -- the markets around the world.
Okay here is BR malls and a year to date it looks pretty darn good at slight little stupid left shoulder head and shoulders pattern here but it's it's certainly broken out to the upside recently in.
Looks like it's pretty much of a high of the year.
But looking at some of the names that you own overall when we could throw these out this as far as your largest holdings you've got.
Simon properties you've got Mitsubishi you've got a company called Westfield Westfield group of course is -- -- Europe Australia and LA.
But -- -- are everywhere they had that huge mall you have to walk through in London to get to the Olympic Stadium.
And we talk -- that Stephen and Peter the CEOs.
And they are are pretty stunning when it comes to what they believe -- a really good time for commercial real estate.
What you think about the -- field assignments you think about the strong class -- -- not only here in United States around the world they're actually doing quite well retail sales erupt.
Their margins are up their ability to capitalize.
On consumers around the world it is it is a great operating business for them.
And it's not just -- US business sort Australia -- European business.
Good mall operators developers are taking that on a global scale.
When you're talking and by the way your -- we should mention is the global Prudential global.
Our front TU RAX and it's got what about one point three billion distracted looking at.
And if you were sitting across the table from a bunch of guys in real estate what would be the consensus of managed smoking hot in which country.
You know it's not it's not a -- country it's not -- market because each individual market yes this distinctive tone itself.
Like what we saw prices in the US dropped 40% -- homes well that might have been in Phoenix but certainly not on on park avenue.
So what we like to look for is almost like a bond portfolio.
Look at -- -- -- -- -- and -- around the world where we find opportunities.
Looking at Europe great opportunities.
When the market recovers buying 2030%.
Below valuation.
How about how about China you know you you -- Cheung Kong but is China coming back from what you've got.
-- word yet China element and the shortest recession or did it affect air China engineered of course by the government to come back but nonetheless it.
Looks slightly better in the last -- China's still doing well and that's one of those countries where we play on the on the margin preferably.
We will invest in the Cheung Kong's the sun hung -- as the world.
To get access to the growth that's coming out of China both retail and residential lots of wealth creation.
Mark -- a -- realistic thank you very much thank you okay he says that the consumer out there shopping globally pick the names he's got the -- closing bell.
