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Thailand Government Pension Fund could make maiden offshore real estate investment

by Ee Fai Kam

  • 06 Jul 2011
  • PE
  • RE

Thailand Government Pension Fund (GPF), the THB 400 billion public pension fund, currently only invests in the domestic real estate market and has yet to diversify beyond Thailand. However, the pension fund is finalizing plans to begin investing overseas, which could start in late 2011. Its offshore investment is expected to be in real estate funds, with a greater focus on private funds than on listed vehicles. Such a move is likely due to lower local knowledge and expertise in offshore markets, resulting in lesser propensity for direct investments. GPF will be looking at core and core-plus funds, although the pension fund does not rule out the possibility of investing in other fund types in the future. Thailand Government Pension Fund will initially seek funds investing in developed economies such as Europe and the US, and may broaden its scope to include other markets over time. The pension fund intends for international property investments to account for 2% of its total assets, which will increase its real estate allocation to 7.5%.

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