Aberdeen Asia property fund closes
The Aberdeen Asia III Property Fund of Funds (Asia III), Aberdeen Asset Management Asia’s third closed-end Asia Pacific-focused property fund of funds, has successfully closed for the first time, having raised $242m of equity.
A number of the first close investors have committed a further $230m in non-discretionary co-investment capital, taking the total potential spending power to $472m.
Hugh Young, managing director of Aberdeen Asia, said: “The success of this first closing reflects the growing strategic theme of investors diversifying their portfolios and increasing exposure to Asia and emerging markets. The region will be an important driver of global economic growth with projected growth rates exceeding those predicted for North America and Europe. The real estate markets in Asia will benefit from this robust economic growth offering long-term opportunities to investors who are willing to do their homework.”
Asia III intends to invest across the risk spectrum in mature markets such as Australia and Japan, as well as emerging markets such as China and India, and is targeting returns of 13-17% per annum. The fund will target commitments of US$400 million, with a hard cap of US$600 million, and has a 12 month capital raising window.