Aberdeen Asset Management Asia Limited will target institutional investors with the launch of its third closed-end property fund of funds.
The fund aims to create a diversified portfolio of best-in-class property funds in the region, including mature markets like Japan, Australia and Singapore, as well as emerging markets like China and India.
The fund will invest across the risk spectrum, from core to opportunistic strategies. With a target gearing of 50-60 per cent, it seeks to deliver returns of 13-17 per cent per annum.
The investment management firm seeks to raise $280-$380 million from investors worldwide, in addition to the sum of around $945 million it already manages in Asian property.
Five investment managers will administer the fund, under the direction of the head of property Asia Pacific, Puay Ju Kang, based in Singapore. Kang said her team would apply a strong research-led process to investment, identifying the most suitable strategy for each market depending on its property cycle. She said the structure – funds, club deals or joint ventures – would also depend on the particular market and property cycle.
“Given Asia’s growth potential, it’s essential we have a presence in the region,” Aberdeen’s global head of indirect property, Jon Lekander said. This is required “to meet demand for dedicated products as well as for global ones, where a regional element will greatly improve overall risk-return profile,” he said.
Aberdeen Asia managing director Hugh Young added that “property stands as the next asset class that is ripe for expansion”. He said the firm hopes to continue its process of diversification with the new fund.
As at 31 March this year, the Aberdeen Asset Management group as a whole had $31.9 billion under management in property across segregated mandates, open-end and closed-end funds, out of over $280.9 billion in total assets.
