MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
HSH and Pacific Star are targeting to raise E500 million ($703 million) for the fund, which is expected to be the first in a series of funds to be set up by the two parties. HSH Real Estate will raise capital from German institutions and private investors, while Pacific Star will be responsible for managing the portfolio.
The fund will invest in property development as well as existing assets especially in the residential and retail sectors, which are among the strongest growth opportunities in this region. It will initially invest in Japan, Singapore and South Korea and then will expand to emerging markets such as India and China.
The search for alternative investments among US and European investors, both in terms of geography and in terms of asset class, is attracting more money to Asian real estate.
ôWe think that in the foreseeable future, selected Asian markets will provide better perspective for real estate investors than other regions,ö says Marc Weinstock, member of the management board at HSH Real Estate.
ôLong-term economic growth, positive demographic trends and market size shall work as a sound basis for the further expansion of individual markets across various asset classes. Combined with the increasing variety of investment products as well as the opportunity for risk diversification for European investors, the Asian market is a place to be,ö he adds.
Just recently, California Public EmployeesÆ Retirement System (Calpers), the biggest pension fund in the United States, set aside $1 billion for investments in Asian real estate, raising its allocation to the regionÆs property sector by 50% to $3 billion.
Previously, Pacific Star Group launched the $845 billion Macquarie MEAG Prime REIT, the US$580 million Eureka Office Fund, the US$1.6 billion Asia Real Estate Income Fund, and the US$600 million Baitak Asian Real Estate Fund.
Kwap property arm appoints CEO; VFMC names new CEO as Lisa Gray retires; MSIG Singapore promotes Mack Eng as CEO; Monroe Capital opens first Asia office in Seoul, hires head from Aberdeen; Vanguard Australia appoints new MD to relocate from US; HSBC AM expands EM debt team; Vantage FX hires from CGS-CIMB in Singapore; and more.
Financials and healthcare have been spotted as promising sectors, while several tech IPOs are on the way, including a $2.2 billion fintech firm and a GIC-backed e-commerce startup.
A strong recovery in the Asia Pacific private capital markets in 2021 sets up favourable hiring and compensation trends.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.