In terms of investor appetite for private real estate in 2015, the Preqin 2015 Global Real Estate Report reveals that Asia-based institutions are likely to be the most active in the year ahead, with more than three-quarters expecting to make new commitments to the asset class in the next 12 months. Asia-based investors are becoming increasingly important players in the global real estate market, with many growing their allocations and targeting more globally diversified portfolios.
Preqin currently tracks 368 wealth managers with exposure to the real estate asset class, just below 10% of which are based in Asia. These firms have median assets under management of $690mn. Sixty-five percent of these firms provide both non-discretionary and discretionary services, 17% of these firms provide solely non-discretionary services and 17% solely discretionary services.
Motilal Oswal Private Wealth Management is one such Asia-based entity actively looking to invest in real estate co-investments, joint ventures and separate accounts. The India-based wealth manager, which currently has a 29% allocation ($129mn) to the real estate asset class, is looking to invest in core and real estate private equity vehicles in West Europe, the Middle East and South Asia. Another private wealth firm targeting private real estate investment in the year ahead is Thailand-based Dragon Pearl Partners. The family office will target Asia-focused fund investments, and in terms of strategy, has a preference for core, core-plus and opportunistic funds. Firms such as these will play a pivotal role in determining the influx of new capital into the real estate asset class from Asia-based investors in the next 12 months, whether they are targeting direct investment or unlisted funds.