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Diversification strategies for indirect real estate. Intersection of business, economics, and society in shanghai mixed-use developments

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  • Alfonso Valero

    (Universidad Politecnica de Madrid)

Abstract

This study examines the impact of large mixed-use developments on the financial performance of publicly listed real estate firms in Shanghai from 2009 to 2019. The research uses a Multi-Criteria Decision Making (MCDM) approach, considering 14 key performance indicators (KPIs) across three categories: Corporate and Financial Information, Strategy Indicators, and Specifics of Mixed-Use Development. The article analyses the performance of large, listed investors on the Hong Kong, Shanghai, and Singapore Stock Exchanges, providing insights into their evolution over the past decade. The literature review highlights the relationship between companies’ performance and corporate finance, capital structure, and financial ratios. It identifies an existing gap in research related to mixed-use assets and indirect real estate. By using the MCDM framework, the study evaluates these assets and provides actionable insights for global investors, asset managers, and developers, helping them make informed decisions in indirect real estate investment. The findings contribute to understanding investment strategy formation in dynamic real estate markets and support informed diversification and urban policy development. This paper offers a useful appraisal framework for future MCDM risk assessments, assisting stakeholders in navigating the complexities of the real estate landscape in one of the world’s foremost metropolitan hubs. It also offers recommendations and insights on best practices for global listed firms while providing a framework for future research in the field of property investment.

Suggested Citation

  • Alfonso Valero, 2024. "Diversification strategies for indirect real estate. Intersection of business, economics, and society in shanghai mixed-use developments," SN Business & Economics, Springer, vol. 4(10), pages 1-26, October.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:10:d:10.1007_s43546-024-00660-3
    DOI: 10.1007/s43546-024-00660-3
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    More about this item

    Keywords

    Multiple-criteria decision-making; Mixed-use; Listed developers; Indirect real estate; Financial ratios; Corporate governance;
    All these keywords.

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other

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