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
Deutsche has had a property business in place in Korea for 10 years, and the newly branded RREEF will continue to be headed by Paul Keough.
Globally, its property business currently has $42 billion of assets under management. A small percentage is allocated towards opportunistic and value-added assets with more than 90% invested in more mainstream investment property assets.
ôWith this consolidation, our real estate business will be regulated and licensed now in Korea,ö says Kurt Roeloffs, head of RREEF Asia Pacific. ôThat allows us to expand, for example, via listed property products such as REITs.ö
In South Korea the firmÆs plan is to buy and manage larger-sized office buildings, principally of grade-A quality, but also grade B from time to time. The total size of the new portfolio is envisaged to rise to $800 million, with individual buildings priced at around $70 million.
With that anticipated ticket size, it means that DeutscheÆs business will be competing against large local players as well as the giant property funds operated by rival international financial institutions.
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.