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Far Eastern Investors in Private Equity Real Estate

by Ee Fai Kam

  • 17 Aug 2011
  • RE

Preqin’s data shows that there are 39 private equity real estate investors based in the Far East, which includes Southeast Asia, Japan and Korea. The Real Estate Online database reveals that collectively, these investors have more than USD 4.3 trillion in assets under management and over USD 51 billion allocated to the real estate asset class. Nearly half (49%) of the investors are located in Japan, 26% in Korea and 13% in Singapore.

One of the largest Japanese investors is Mitsubishi Corporation. A member of Mitsubishi Group, the USD 142 billion corporate investor gains exposure to private equity real estate through vehicles that invest in Southeast Asia, South Asia and the emerging markets. Mitsubishi Corporation is interested in funds employing core-plus, value added and opportunistic strategies. It also invests in property through direct investments.

Another significant investor in private equity real estate is South Korea’s Woori Bank, which has USD 274 billion under management. It has a preference for domestic funds and will only commit to vehicles with known target properties. It is open to all fund strategies, and will only invest with experienced fund managers.

With USD 248 billion in AUM, Singapore sovereign wealth fund Government of Singapore Investment Corp (GIC) is another key investor in private equity real estate. It has an allocation of 10% to the asset class, and invests in a wide range of strategies including core-plus, value added, opportunistic, distressed and debt. GIC is a global investor, although its focus on Asia has increased in recent times. In March, the sovereign wealth fund opened an Indian office to facilitate investments in the country. Besides unlisted funds, GIC also gains exposure to real estate via direct investments and listed vehicles.

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