Real estate in Asia could be set for a wave of evolution, Straits Trading chairman says

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"But like everything in investments (and) in business, you have a whole range of factors.
You will never have everything going 100 percent," Chew told CNBC`s "Managing Asia.
" Straits Trading began as a tin smelting business, but it has shifted to become an investment company with a focus on real estate and hospitality.
The company has stakes in Straits Real Estate, Far East Hospitality Holdings, ARA Asset Management and Malaysia Smelting Corporation.
Chew, a former lawyer, is also the granddaughter of the late Tan Chin Tuan, the prominent former chairman of the Oversea-Chinese Banking Corporation (OCBC).
Tan`s investment group acquired Straits Trading in 2008.
As for investing amidst political uncertainty stemming from Brexit and policy risks potentially arising from the new administration in the U.
S.
, Chew`s approach involves preparing for the worst and moving ahead when things go wrong — a strategy she adopted when making decisions during the global financial crisis.
"It`s difficult.
I mean, put simply, everyone has the same issues … But like everything in life, it`s risk and return.
So you try and calibrate your risk and you need to make a judgement call," Chew said.
For now, Chew is bullish on the evolution of the property market in Asia, adding that Straits Trading can become a major player in the securitization of real estate.
Real estate investments are a substantial proportion of the company`s earnings, contributing $52.
7 million of the $67.
3 million in profits made last year.
"What I`d like to do is to ride the wave of — or rather, potential wave, (as) not everyone may agree with me — of securitization of real estate in Asia," she said, highlighting real estate investment trusts (REITs), property funds and real estate-backed financial instruments as examples.
Going forward, the real estate market in Asia has more room to run, Chew said.
"It`s not just in terms of prices, but more in relation to how it evolves.
Because as it evolves, you will need different instruments," she added.

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