The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Pangaea is a special situations fund, with two-thirds of its investments focused on the real estate sector, in which field it covers distressed debt, unbundling property from corporate structures, securitizations, plus direct property holdings and developments.
The firm was established in 2005 by Robert Zulkoski. Its investors have placed $700 million with the firm, which, after leverage, is reflected in $2 billion in assets being managed.
ôWe made an aggressive start-up in 2005, and deal flow is running ahead of capital raising,ö Robert Zulkowski told Asian Investor. ôThis transaction will help Pangaea to attend to future capital raisings, as well as provide us with cross-border expertise on certain complex deals.ö
Zulkowski will now take the role of handling OaktreeÆs real estate business in Asia, along with the 25-strong team that he built at Pangaea.
Zulkowskt launched Colony CapitalÆs Asian business in the late 1990Æs along with John Brady, who is currently OaktreeÆs global head of real estate.
Oaktree currently has $50 billion in assets under management. In addition to offices in Beijing and Singapore, Oaktree opened up in Hong Kong in November 2005 and appointed Ralph Parks, former CEO of JP Morgan Asia Pacific, as the chairman of the Oaktree Hong Kong subsidiary. In August 2007, Oaktree closed its first Asia-specific private equity fund. Named as the OCM Asia Principal Opportunities, it has raised $577 million.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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