There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
It is a dual-country, total return fund that aims to capitalise on the growth potential within India and China by developing office, retail and residential real estate within these two markets. Its assets now stand at $1 billion and it has a targeted maximum fund size of about $2 billion. After leverage at the project level, the size of the fund will be $4 billion.
The target annual returns for the fund are 20%. Drawdown and investment period is expected to be completed within three years and with a typical lifespan of around five years per investment. There is no liquidity for the fund, and the tenor is approximately eight years.
HSBC Private Bank has been given the exclusive distribution rights for high-net-worth investors via a feeder fund named the HSBC Emerging Growth Real Estate Fund. Ordinarily, tickets of $50 million have to be written in order to invest in this Mapletree fund, but for HSBC private clients, they can come in for $250,000.
Last week, the fund signed an agreement with Guangzhou Southern-Donald Scientific Technology to jointly develop a nine hectare mixed-use development in Nanhai District of Foshan City in Guangdong Province, comprising of high-end service apartments and a retail mall with a total development value of $320 million.
The fund's first project in China was Future City, an integrated residential and retail development in Beilin District, Xi'an with a total development value of approximately $144 million. Its second investment is an office block in Beijing's Central Business District with an investment value of about $121 million.
For HSBC, this is the second product from the real estate unit within its private bank. That unit was set up by ex-Colliers executive Chris Allen in 2007, in order to help their investors find access to investment and development property, either via private equity-style real estate funds or by direct physical investment. Their first product, the globally themed International Property Opportunities Fund is shortly about to close, with assets in the region of $100 million.
To get the clarity they want to make informed portfolio decisions, asset owners and managers must now blend and adapt multiple sources of traditional and non-traditional data to create actionable insights, said speakers at a webinar hosted by AsianInvestor and IHS Markit.
The country's largest insurer Ping An set up a $62 billion green investment target by 2025. Several more players are also joining the hunt for sustainable assets.
The boss of Thailand’s second-largest pension fund hopes that proposed changes in the law will help her diversify more into overseas markets. She is particularly bullish on China.
Investors can still find spread premiums in niche private debt, with the asset class's prognosis looking strong, said a keynote speaker at AsianInvestor’s latest summit on Wednesday.