The proposed US ban on travellers from seven countries is a boon for Australia's education and student accommodation sectors, according to global fund manager LaSalle.
LaSalle Investment Management is one of the world's major property fund managers with $60 billion in funds under management. In Australia it has $1.9 billion under management.
Student accommodation and apartment buildings for rent are among the emerging opportunities that Lasalle has identified locally in its appraisal of the 2017 market.
On an investor roadshow here, global research chief Jacques Gordon said LaSalle already had investment in student housing elsewhere in the world – the US and the UK – and it was "tracking" the sector in Australia.
"Coming from the US where our new president and administration are really putting up signals to students from at least seven countries if not more that 'maybe you're not welcome in the United States' could benefit Australia tremendously," Mr Gordon told The Australian Financial Review
"If you're thinking 'I want to go to a country where I can work on my English language skills and I can stay relatively near say China or India or Malaysia', you'll be the beneficiary of that.
"So student housing would be another good thing for us to be watchful of here in Australia."
LaSalle's interest in students is not surprising. The sector has become a magnet for institutional investors as the supply of beds struggles to keep up with demand.
Already local players have secured backing from global funds to drive their development books, including Scape Student Living – now backed by both European and Asian investors – and Brisbane-based Blue Sky Private Real Estate, which is in a joint venture with Goldman Sachs.The $2 billion sale of student accommodation giant Campus Living Villages is also drawing bids from institutions such as AMP Capital.
Value-add investment in CBD offices – a strategy singled out last year by LaSalle – remains on its priority list, although the opportunities and returns are diminishing.
And according to Elysia Tse, its Asia Pacific research chief, Australia will also benefit from the regional surge in tourism and business travel as trade within Asia increases.
LaSalle has already played that theme in Australia, refurbishing and then selling the Novotel on Collins Street in Melbourne to Frasers Hospitality Trust last year for $237 million. It also sold a neighbouring retail complex to JPMorgan Asset Management.
The global funds giant's exposure in Australia was further reduced last year when investors in a $600 million core plus fund decided to switch managers for Brisbane-based QIC.
But there is more investment fuel in the tank, with the launch last year of LaSalle's fifth Asian Opportunity fund. Australia is expected to be a key target for the $US1 billion fund.And just as Australia benefits from its inclusion in Asian capital flows, the region may also provide shelter in the event of a trade war.
"US trade protectionism is probably on the top of everyone's mind today," Ms Tse said, commenting on global market risks.
China was now Australia's largest trade partner and the Asia Pacific region now did more trade within itself than it did with any other, she said.
