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Aberdeen Asia launches third property FoFs

July 14, 2011
- 7:32 pm

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Aberdeen Asset Management Asia Ltd, the Singapore-based operating arm of Aberdeen Asset Management, announced this week the launch of its third closed-ended property FoFs to the

Aberdeen Asset Management Asia Ltd, the Singapore-based operating arm of Aberdeen Asset Management, announced this week the launch of its third closed-ended property FoFs to the institutional investor community. The new portfolio will be developed by choosing best-of-breed Asian property funds in the region by focusing not only on well-established markets including Japan, Australia and Singapore but also emerging markets including India and China. Target annualized returns are 13 to 17 per cent, which will be achieved using modest gearing of 50 to 60 per cent. The firm launched its first property FoFs back in 2006 which it followed thereafter with a second, amounting to what is today a combined AUM of USD1billion.

Aberdeen Asia are hoping to raise between USD300million and USD400million for the new fund from global investors. A five-man team based in Singapore will manage the portfolio, headed up by Puay Ju Kang, Aberdeen Asia’s Head of Property for APAC. Kang’s team will employ a research-intensive approach to help identify the best strategy in each market and subsequent manager to invest in. This could include entering into a JV under the right circumstances, something Aberdeen Asia’s property team did recently with GE Japan Corporation to invest in Tokyo’s residential market.

The firm’s global head of indirect property, Jon Lekander (pictured), said that it was essential the firm had a presence in the region given its growth potential, adding: “With this latest product, we further affirm our belief in the investment opportunities in Asia and our ability to make the best of them.” Aberdeen Asia MD Hugh Young believes that property is the next asset class “ripe for expansion”, and said the firm had “high hopes that with this launch our diversification can successfully continue”.

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