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Asia-Pacific Investors in Private Real Estate Debt Funds – January 2014

by Joyce Chee

  • 29 Jan 2014
  • RE

Preqin currently tracks 80 Asia-Pacific institutional investors that actively pursue investments in private real estate debt funds. Collectively, these Asia-Pacific investors manage $4.8tn in total assets, with an exposure of $144bn to the real estate asset class. 

South Korea-based investors have the strongest appetite for private real estate debt funds, accounting for 33% of institutions based in Asia-Pacific that are interested in such funds. This is followed closely by investors located in Australia (26%) and Japan (18%). Singapore-based institutions comprise 8% of investors, while institutions based in Hong Kong and India account for a combined 4% of the investor pool. 

Superannuation schemes exhibit a strong preference for debt vehicles, making up the largest proportion of Asia-Pacific institutional investors (19%) that actively pursue private real estate debt funds. Fifteen percent of Asia-Pacific-based investors with an interest in debt funds are banks, while 11% of public pension funds share the same preference for debt vehicles. Asset managers account for 10% of the investor pool and insurance companies, private sector pension funds and sovereign wealth funds make up the rest of the institutions located in Asia-Pacific. 

In terms of geographic preferences, unsurprisingly, Asia-Pacific institutions have a healthy confidence in Asia, with 84% of these investors showing a preference for the region. Developed markets such as North America (63%) and Europe (53%) are also a preference among Asia-Pacific-based investors. Australasia is less sought after by investors, with 41% showing an inclination for investing in the region.  

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