TH Real Estate has announced the launch of its open-ended property fund, the Asia Pacific Cities Fund, which will invest in selected “future-proof” cities across the Asia Pacific.
The fund would be aimed at institutional investors and would focus on 17 principal and progressive cities across the region, which would be selected based on a proprietary research filter which aims to identify those that would take advantage of demographic and structural growth, with a particular focus on office, retail, industrial and residential assets.
TH Real Estate’s parent company, TIAA committed an initial co-investment of US$200 million and the fund would have an overall target size of over US$2 billion over a five-year period, with an aim to achieve a long-term target return of seven to 10 per cent per annum.
TH Real Estate’s real estate manager, Louise Kavanagh, said the fund would apply a granular approach to stock selection, with a focus on asset and submarket drivers to complement the cities-based approach and help enhance returns for clients.
“Our Asia Pacific Cities Fund is designed to offer investors access to what we term as future-proof, resilient cities in an exciting growing region. We have a strong heritage in core investments, as well as on-the-ground Asia Pacific investment and asset management capabilities,” she said.
“Our long-term investment approach seeks strong returns through market cycles, underpinned by structural trends for long-term growth, tapping into the Asia Pacific’s growing economic dominance.”
The firm said that six Australian cities featured among the investment destinations and would be targeted by the fund, including Sydney, Melbourne, Brisbane, Canberra, Perth and Adelaide.
