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Funds in Market Being Raised by Asia-Pacific-Based Fund Managers – August 2012

by Ee Fai Kam

  • 15 Aug 2012
  • PE

Currently, 49 private real estate funds on the road are operated by Asia-Pacific-based managers. Together, these 49 funds are seeking an aggregate capital of $16.3bn. All of the funds have a predominant focus on the Asia-Pacific region itself, although two funds will also seek opportunities globally.  

Forty-nine percent of the funds in market being raised by Asia-Pacific-based managers have already held at least one interim close; these funds are targeting an aggregate $8.5bn in commitments. Of the funds that have held interim closes, 71% have successfully held a first close, 21% have secured a second close, while those with third and fourth closes make up 4% each.  

The majority of the private real estate funds managed by Asia-Pacific-based firms currently in market (69%) employ an opportunistic strategy. Thirty-three percent of the funds use a value added strategy, while core-plus and distressed strategies are the next most common, with 18% and 12% of vehicles employing these strategies respectively. Core and debt funds each make up a further 8% of the private real estate funds in question.

The average target size of private real estate funds on the road managed by Asia-Pacific-based firms is $341mn, while the largest three vehicles in this pool are Secured Capital Real Estate Partners V, Alpha Asia Macro Trends Fund II, and ARA Asia Dragon Fund II, each seeking to raise $1bn in total commitments. Secured Capital Real Estate Partners V is a Japan-focused fund employing debt, distressed, and opportunistic strategies on a diversified range of properties. Alpha Asia Macro Trends Fund II is managed by Singapore-based Alpha Investment Partners, and seeks core-plus and value added real estate in developed markets within Asia. It targets the property markets of Singapore, Japan, Taiwan, South Korea, Hong Kong, mainland China, India, and Vietnam. ARA Asia Dragon Fund II is an opportunistic private real estate vehicle investing in office, retail and residential assets throughout Asia, with a particular focus on China, Hong Kong, Malaysia, and Singapore.  

In the last 12 months, a total of 18 private real estate funds operated by Asia-Pacific-based managers have held a final close. These 18 vehicles raised a total of $3.6bn, with the average fund size being slightly above $200mn.

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