_Belt and Road is a long-term initiative

Transitioning from a low-risk, pure-play to a patient long-term strategy.

January 30, 2018

Assessing the opportunities around a project of such enormous scale and vision – with so many unknowns – is a challenge. However, with the push behind the initiative picking up steam, investors and developers are increasingly broadening their horizons and willing to explore a broader range of opportunities along the Belt and Road.

Fluctuating bilateral relations, varying levels of institutional effectiveness and market risks – in addition to language and culture barriers, remain key challenges to the success of the BRI. These obstacles, coupled with the sheer scale of the vision mean that we believe that progress will be patchy and opportunities will be staggered.

One thing, however, is clear: the BRI is a long-term initiative that will play out over decades, not simply years. Therefore, it will take patient capital that is prepared to look at new frontier markets with greater levels of country risk and at greenfield projects that have a long-term time horizon. For many, this transition away from pure-play, low-risk investment, requires detailed market knowledge and advice in terms of deal sourcing, evaluation, execution and asset management.

While we expect the bulk of Chinese real estate investment to continue to target the major gateway markets in the West, as infrastructure improves and capital flows increase, Belt and Road markets will become a more common investment avenue.

New Frontiers not only brings into sharper focus the potential of many of the BRI markets, but also helps identify where, within the jigsaw of the various geographies, the opportunities could lie. We hope this report provide the data and insights to help you develop and steer a Belt and Road investment strategy.

_Belt and Road is a long-term initiative

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New Frontiers: The 2018 Report

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