Asia-Based Private Equity Real Estate Fund Managers

by Farhaz Miah

  • 09 Sep 2011
  • RE

There are 95 Asia-based private equity real estate fund managers currently active. India is host to the highest number of Asia-based managers, with 26 firms located in commercial hubs such as Mumbai and New Delhi.  22 Asia-based firms are located in Hong Kong, with 18 firms located in Singapore. 13 Asia-based firms are headquartered in Japan, while 10 are located in China. Other countries, including South Korea and Vietnam, account for the remaining six firms.

Asia-based fund managers utilize a diverse range of fund strategies in order to invest in the real estate asset class. Opportunistic strategies are highly favoured by Asia-based fund managers, with 75% of these fund managers making use of this strategy. Value added strategies are also regarded, with 37% of Asia-based fund managers utilizing this strategy. Distressed and core strategies are also on the radar of Asia-based fund managers, with 17% of fund managers exhibiting a preference for these strategies. 13% of Asian fund managers use core-plus strategies, with around 8% making use of debt strategies.

In terms of property preferences, 86% of Asia-based real estate fund managers demonstrate a preference for residential real estate, while 57% of Asia-based firms exhibit a preference for retail properties. Office properties are also favoured, with 47% of Asia-based fund managers seeking to invest in the asset sub class. Mixed use properties are targeted by 21% of Asia-based firms, with 19% of Asian firms inclined towards hotel properties. Industrial properties are preferred by 18% of the Asia-based fund manager universe and 13% targeting logistics properties.

Singapore-headquartered CapitaLand is the largest Asia-based real estate fund manager by aggregate capital raised in the last 10 years, garnering commitments of $6.5bn in total over this period. The Japanese real estate firm KK DaVinci Advisors and Singapore-headquartered Alpha Investment Partners are the next largest Asia-based fund managers, having accumulated $4.5bn and $2.3bn in aggregate commitments in the last 10 years respectively.

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