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Paul Lee, Co-Founder, CEO and CIO of Paragon Capital Management Singapore, speaks to REM TIMES on the evolving real estate and investment market of APAC
September 18, 2024 | Deepa Natarajan Lobo | Singapore | Property Management
With over two decades of experience steering high-net-worth clients through volatile markets, Paul Lee has established himself as a leading figure in wealth and investment management. His journey has seen him excel across top-tier institutions such as Credit Suisse AG and Barclays Wealth & Investment Management, earning the trust of clients who have remained with him for over a decade.
The expertise of the Co-Founder, Chief Executive Officer and Chief Investment Officer of Paragon Capital Management Singapore, is widely recognised. In fact, his firm recently achieved a significant milestone by raising close to $38 million in the first close of its global real estate fund (GREAT), in partnership with the real estate co-investment platform RealVantage.
In this exclusive interview with REM TIMES, Lee offers his insights into the dynamic real estate landscape and shares his strategies for navigating investment opportunities in today's evolving market.
Q. What do you think of the evolving real estate landscape of Singapore, and what opportunities do you foresee for investors and businesses in the Asia Pacific region on the whole?
Real estate continues to prove itself as a resilient asset class, offering excellent growth opportunities for diversification-minded investors. With the current economic uncertainties, we are also seeing clear market dislocations in the real estate sector. These present attractive value for investors.
The Asia Pacific region, with Singapore at its heart, is particularly dynamic, offering a blend of established markets and emerging opportunities that can yield significant returns when approached strategically.
Q. Tell us about the global real estate fund (GREAT) for which your firm recently raised 38 million dollars.
Our GREAT Fund is a global private equity real estate initiative designed to create a diversified portfolio of investments across multiple markets. We are targeting a net internal rate of return of 12-15% over a five-year period, which includes a projected 4-5% cash yield distributed quarterly. What sets the GREAT Fund apart is its ability to capitalise on market demand-driven real estate asset classes. We achieve this by leveraging partnerships with established real estate managers in the Asia-Pacific, Australia, the UK, and the US. This allows us to access a wide range of investment opportunities across equity, mezzanine, and debt capital markets.
Q. What strategies do you recommend for fostering business growth and investment in Singapore regardless of the industry?
At Paragon Capital Management, our core strategy revolves around building long-term relationships with our clients. We're committed to helping them grow their wealth through research-driven investment strategies. We believe thorough insightful market analysis will position our clients well for capitalising on emerging or existing opportunities. In Singapore's dynamic business environment, this means staying agile, embracing innovation, and always keeping an eye on both local and global market forces.
Q. What are the key trends you foresee when it comes to real estate investments in Singapore and Asia Pacific?
We anticipate a resurgence in commercial real estate investment later in 2024, driven by the expectation that the fed and central banks across Asia Pacific will begin to cut interest rates. This shift is likely to stimulate market activity and create new opportunities for investors.
In terms of specific sectors, we're seeing promising opportunities in core-plus, value-add, and opportunistic real estate asset classes.
Our focus is on industrial, logistics, residential, retail, office, and hospitality sectors. Additionally, we're closely watching emerging sectors such as build-to-rent properties, healthcare facilities, student accommodation, and elderly care centres. These areas are showing potential for significant growth and returns, reflecting broader demographic and economic trends in the region.
Real estate continues to prove itself as a resilient asset class, offering excellent growth opportunities for diversification-minded investors. With the current economic uncertainties, we are also seeing clear market dislocations in the real estate sector. These present attractive value for investors.
Paul Lee, Co-Founder, CEO & CIO of Paragon Capital Management Singapore
Q. How has technology influenced the investment industry on the whole?
Technology has been a game-changer in our field. At Paragon Capital Management, we view it as a powerful gateway to enhance our capabilities, services, and performance. We're constantly exploring ways to leverage technological advancements to provide more accurate analysis, streamline our operations, and ultimately deliver better results for our clients.
It's not about replacing human expertise, but rather leveraging it to power capabilities and create more value.
Q. What advice do you have for budding entrepreneurs and investors?
For those starting their journey in entrepreneurship or investment, I cannot overstate the importance of trust. At Paragon Capital Management, the trust we've built with our clients over the years is our most valuable asset. It has been and will continue to be our north star in doing business.
My advice would be to prioritise building and maintaining trust in all your professional relationships. It's the foundation of long-term success in this industry.
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