Aberdeen targets institutional investors with Asia Pacific property fund

14 July 2011

| By Ashleigh McIntyre |

The Asian arm of Aberdeen Asset Management has launched its third closed-ended property fund of funds targeting institutional investors.

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.

It aims to invest across the risk spectrum from core to opportunistic strategies, with a target gearing of 50 to 60 per cent and returns of 13 to 17 per cent per annum.

Aberdeen is looking to raise between US$300-$400 million from investors worldwide.

This is in addition to the sum of around $1 billion it already manages in Asian property, having launched its first Asian fund of funds in 2006.

Five investment managers will administer the fund, under the discretion of the head of property for Asia Pacific, who is based in Singapore.

Global head of indirect property, John Lekander, said the expansion of the manager’s Asian operation was critical given the growth potential in the area.

“It’s essential we have a presence in the region, both to meet demand for dedicated products as well as for global ones, where a regional element will greatly improve the overall risk-return profile,” he said.

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