Asia Pacific - The Next Wave of Capital Deployment: New Strategies for Fund Managers January 2018
Private equity real estate fund raising activity in Asia Pacific has recovered in recent years as investors refocus on the region. US$42 billion of capital was raised by Asia Pacific focused closed-end real estate funds formed between 2014 and Q3 2017, which translates to around US$116 billion (post leverage) of purchasing power.
Of this US$116 billion, around half has already been deployed. CBRE Research therefore estimates that funds possess US$53 billion to be invested in the region over the next three years. China will be the largest recipient of this deployment, followed by Japan and Australia.
This report by CBRE Research identifies the markets and sectors where this capital is destined and sets out the investment strategies likely to be utilised by core, value added and opportunistic funds in Asia Pacific over the next three years.
With property yields having compressed to historical lows, and new technology transforming corporate real estate, the lines between investment strategies are increasingly blurred. CBRE Research believes that gaining a thorough understanding of occupier behaviour and requirements will be critical to formulating a successful investment strategy.