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Private Real Estate Fundraising by Asia-Based Fund Managers – April 2015

by Joyce Chee

  • 14 Apr 2015
  • RE

Preqin’s Real Estate Online service currently tracks 213 fund managers located in Asia. Since 2009, a total of 165 closed-end private real estate funds managed by Asia-based fund managers have held a final close, having raised an aggregate $38bn from institutional investors. 2013 marked a successful fundraising year, with $10.4bn raised by fund managers based in Asia, at an average of $434mn per fundraise, a figure that fell significantly to $253mn per fundraise in 2014. As of April 2015, the average size of a fund raised by Asia-based fund managers is $496mn per fund, demonstrating a positive fundraising outlook for the year ahead.

The majority of the 165 real estate funds raised by Asia-based managers since 2009 are single strategy vehicles; 75% are either core, core-plus, debt, distressed, opportunistic or value added funds, while the remaining 25% employ a mix of these strategies. The top strategy employed by Asia-based managers that have raised vehicles in the period 2009-2015 TD is opportunistic, with 58% of Asia-based real estate firms utilizing this strategy for their fund investments. Seventeen percent of Asia-based fund managers will target core assets, while 10% will employ a value added strategy. 

At present, there are 47 closed-end private real estate funds in market managed by Asia-based firms, aiming to raise an aggregate $12bn in institutional commitments. Of the funds raised by Asia-based fund managers that are on the road, 36% have achieved a first close while 28% have held at least two closes.  

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