#50 Ryan Bass | The Repricing of Institutional Property: From Single Digits to Double-Digit Potential

In this episode of The Rate of Change, Murdoch Gatti sits down with Ryan Bass, Founder of PanGen Capital, to discuss the repricing of institutional property and how capital is being deployed in a higher rate, more fragmented market environment.

If you are interested in institutional real estate, income-focused investing, and how professional investors are accessing property opportunities typically reserved for large institutions, then you will enjoy this conversation.

Over the past two years, rising interest rates have reshaped the property landscape. Valuations have reset, capital has become more selective, and many investors have stepped back from the asset class.

But while sentiment has weakened, the underlying income story has not.

High-quality retail assets — particularly shopping centres — have proven more resilient than expected. Centres remain well occupied, tenant demand is strong, and trading conditions are healthy. At the same time, higher construction costs are limiting new supply, reinforcing the value of existing assets.

These dynamics are feeding directly into income.

Retail leases are often linked to CPI or turnover, allowing landlords to pass through rising costs while benefiting from tenant performance. In many cases, rental income has remained resilient and continues to grow despite broader market uncertainty.

This is where the opportunity is emerging.

Where institutional property once delivered mid- to high-single digit returns, parts of the market are now presenting the potential for double-digit return profiles — driven by improved entry pricing, durable cashflows and reduced competition.

Ryan explains why capital is rotating into retail, how office assets are becoming increasingly selective, and how his fund-of-funds model provides access to institutional-grade opportunities — including exposure to the Dexus Wholesale Property Fund and leading institutional retail property vehicles such as GPT Wholesale Shopping Centre Fund, Lendlease APPF Retail Fund, Dexus Wholesale Shopping Centre Fund and ISPT Retail Australia Property Trust — that are typically inaccessible to most investors.

He also reflects on how the strategy has evolved from a focus on defensive income to capturing a more compelling return profile without necessarily increasing risk.

In this conversation Murdoch and Ryan discuss:

• How rising interest rates have driven a repricing across institutional property markets

• The shift to a higher cost of capital and its impact on valuations

• Why returns are moving from mid-single digits to potential double-digit opportunities • The disconnect between sentiment and underlying income

• Why retail property, particularly shopping centres, has proven resilient

• How strong occupancy, tenant demand and trading conditions are supporting assets

• The impact of rising construction costs in limiting new supply

• How CPI-linked leases and turnover rents allow landlords to pass through inflation

• The rotation of capital away from office into higher conviction opportunities

• The bifurcation within office markets and focus on high-quality assets

• Exposure to institutional managers, including the Dexus Wholesale Property Fund

• The structure of PanGen Capital’s fund-of-funds model

• Differences between core, core-plus and value-add strategies

• How capital scarcity is creating better acquisition opportunities

• The importance of manager selection and asset quality

• Managing liquidity and portfolio construction in unlisted assets

• The role of institutional property for income and diversification

• How investors are positioning in a higher rate, uncertain environment

Enjoy!