New funds to target Asia

News

31 October 2000

A total of £2bn will be poured into Asia by Lend Lease, AMPHenderson Global Investors, LaSalle Investment Management and ING Real Estate

Four new investment funds are looking to spend more than $2bn in Asian property markets, to capitalise on the economic recovery that is now under way in the region.

AMP Henderson Global Investors, and its local Singaporean partner Keppel Land, have launched the Asia No 1 Property Fund, which plans to raise $300m in equity from institutional investors in Australia, the US and Europe.

With debt, the fund is expected to have a total investment volume of $600m. The joint venture partners will co-invest, with each partner contributing $25m. The asset managers are targeting an annual internal rate of return of 20%. The fund has a life of eight years, with the first three years being the investment period.

Initially the fund will invest in Singapore and Hong Kong; a second phase will look at Malaysia and Thailand. The fund will offer a diversified portfolio with investments in offices, apartment buildings, and retail.

LaSalle Investment Managers is raising capital for The Asia Recovery Fund, which expects to secure $300m of equity and $300m of local currency debt to provide a hedge against exchange rate risks.

The fund will invest in four main markets; Tokyo, Seoul, Hong Kong and Singapore, and in offices, apartment buildings and retail. It will look at development opportunities as well as existing buildings.

“Property values have fallen 30% to 60% over the past three years, so there is a lot of potential for capital appreciation,” said Jack Chandler, regional CEO of LaSalle Investment Management, Asia Pacific.

Australian fund manager Lend Lease is raising its second Asian fund, after spending more than $600m, mainly in Hong Kong and Singapore, via a fund set up in 1996. The fund will target Japan, Korea and Taiwan.

Separately, Lend Lease Global Properties, in partnership with Salomon Smith Barney, recently acquired a $436m non-performing loan portfolio from Korea Exchange Bank.

Dutch investor ING Real Estate is raising a $500m fund with Pidemco Land of Singapore, for which it has secured $193m to date. The asset managers are expecting to achieve a net annual return of 15%, investing in the Philippines, Singapore, Thailand, Indonesia and Malaysia.

The fund has taken a stake in an office building in Singapore and is also taking stakes in listed companies in the region.

A total of £2bn will be poured into Asia by Lend Lease, AMPHenderson Global Investors, LaSalle Investment Management and ING Real Estate Four new investment funds are looking to spend more than $2bn in Asian property markets, to capitalise on the economic recovery that is now under way in the region. AMP Henderson Global Investors, and its local Singaporean partner Keppel Land, have launched the Asia No 1 Property Fund, which plans to raise $300m in equity from institutional investors in Australia, the US and Europe. With debt, the fund is expected to have a total investment volume of $600m. The joint venture partners will co-invest, with each partner contributing $25m. The asset managers are targeting an annual internal rate of return of 20%. The fund has a life of eight years, with the first three years being the investment period. Initially the fund will invest in Singapore and Hong Kong; a second phase will look at Malaysia and Thailand. The fund will offer a diversified portfolio with investments in offices, apartment buildings, and retail. LaSalle Investment Managers is raising capital for The Asia Recovery Fund, which expects to secure $300m of equity and $300m of local currency debt to provide a hedge against exchange rate risks. The fund will invest in four main markets; Tokyo, Seoul, Hong Kong and Singapore, and in offices, apartment buildings and retail. It will look at development opportunities as well as existing buildings. “Property values have fallen 30% to 60% over the past three years, so there is a lot of potential for capital appreciation,” said Jack Chandler, regional CEO of LaSalle Investment Management, Asia Pacific. Australian fund manager Lend Lease is raising its second Asian fund, after spending more than $600m, mainly in Hong Kong and Singapore, via a fund set up in 1996. The fund will target Japan, Korea and Taiwan. Separately, Lend Lease Global Properties, in partnership with Salomon Smith Barney, recently acquired a $436m non-performing loan portfolio from Korea Exchange Bank. Dutch investor ING Real Estate is raising a $500m fund with Pidemco Land of Singapore, for which it has secured $193m to date. The asset managers are expecting to achieve a net annual return of 15%, investing in the Philippines, Singapore, Thailand, Indonesia and Malaysia. The fund has taken a stake in an office building in Singapore and is also taking stakes in listed companies in the region.