Very unlikely. Investors have long memories and would be reluctant to let local companies expand outside of their areas of expertise.
There is pressure to show a quick return on investment and investors are often unwilling to look long-term to Asia, despite it being the fastest-growing region (for the foreseeable future).
There will be no incentive to go overseas until returns become attractive relative to Australia. Contrast this to real estate companies in Singapore where a majority of REITs have operations overseas. For example:
- CapitaLand (presence in 32 countries including Australia, Malaysia, Japan, China, Cambodia, Vietnam),
- Mapletree (presence in 13 markets including Australia, China, Hong Kong, India, Japan, Malaysia, South Korea, Vietnam),
- Frasers (presence in 25 markets including Australia, China, South Korea, Japan, Vietnam, Indonesia, India, Thailand).
Granted Singapore is an extremely small country, but they have a long-term view and understand the importance of diversifying and building long-term relationships. For example, CapitaLand entered Vietnam and China in 1994.
Is it too late for Aussie REITs to expand overseas, especially to Asia?