Investors pour US$27bn into non-listed Asia Pacific strategies in 2018

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Investors upped their exposure to riskier real estate strategies in Asia Pacific, as non-listed property strategies in the region attracted US$26.9bn in 2018, according to a new survey.

Asia Pacific made up 14.5% of the $185.4bn in new capital raised globally for private real estate in 2018, according to research compiled by ANREV, INREV and NCREIF.

More than half of the capital raised went to Asia Pacific non-listed real estate funds skewed towards riskier strategies, however investors still allocated 42% of capital to core funds.

(image: ANREV)

“The survey also reflects the variety of options on offer to Asia Pacific vehicles, with a return in appetite for riskier strategies,” said Amélie Delaunay, director of research and professional standards at ANREV.

Asia Pacific fund managers earmarked three-quarters of new equity towards strategies focused on the region, with more than half of new capital allocated to single country funds.

Australia attracted the largest share of equity among the single country funds with 23.2%, followed by Japanese funds at 14.2%.

(image: ANREV)

Funds remained the most popular investment vehicle in the region, attracting half of the new equity raised last year.

Pension funds and insurance companies continued to be the main sources of capital in Asia Pacific, accounting for 43.1% and 16.8% respectively.

Sovereign wealth funds made up almost 10% of new equity raised in the region last year.