Investors Love Asia-Focused Real Estate Funds

Despite economic uncertainties and market volatility, global investors are allocating more capital to invest in Asia’s real estate sector.

Private real estate funds targeting Asia have raised a total of US$10.5 billion in 2013, up from 2012’s total of US$7.9 billion and US$5.4 billion in 2011, according to data released by private equity research firm, Preqin.

There are 51 Asia-focused private real estate funds currently in the fundraising process, seeking to raise an aggregate of US$20.5 billion.

Reflecting a shift in investor sentiment, 22% of Asia-focused private real estate funds closed in 2012 and 2013 were able to raise 125% or more of their fundraising target. No funds achieved this in 2010 to 2011.

Several large global private real estate firms launched Asia-focused funds in 2013, including Blackstone Real Estate Partners Asia, which is targeting to raise US$4 billion. This is the largest Asia-focused private real estate fund currently in market.

Aetos Capital Asia V, managed by Aetos Capital Real Estate, is hoping to raise US$1 billion. Invesco Real Estate’s Invesco Asia Real Estate Fund III is trying to collect US$800 million, and Red Fort Capital’s Red Fort India Real Estate Fund III is also targeting US$800 million.

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