Despite the continued interest among fund managers and investors in real estate vehicles focused on such economic regions as the BRIC and MENA regions, the fundraising market has recently witnessed the emergence of a number of ASEAN-focused real estate funds. ASEAN (the Association of Southeast Asian Nations) formed 45 years ago and is currently includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam.
Preqin Investor Network currently tracks 501 real estate funds in market, including 11 vehicles seeking opportunities in the ASEAN region. These ASEAN-focused real estate funds are presently targeting $5.3bn, which represents 3% of the aggregate target size of all real estate funds currently in market. The majority of the ASEAN-focused funds are being raised by managers based outside ASEAN, including the US, Germany, Netherlands and Hong Kong.
One of the most prominent real estate funds in market seeking exposure to ASEAN is Alpha Asia Macro Trends Fund II. The vehicle is currently looking to raise $1bn in order to invest mainly in developed markets in Asia, such as Singapore, Japan, Taiwan, South Korea and Hong Kong. Blackstone Real Estate Debt Strategies II is seeking $800mn and planning to invest in properties in Greater China; it will also dedicate some capital to other parts of Asia, especially ASEAN.