PAG, investors pour nearly US$700m into Asia Pacific office portfolio

A group of institutional investors, including Dutch investment manager Bouwinvest, has invested nearly US$700m (€615m) into a portfolio of 26 offices spanning Tokyo, Osaka, Hong Kong, Seoul and Auckland.

Bouwinvest has committed US$100m towards the deal under its international mandate for Dutch construction workers pension fund, bpfBOUW, the firm said in an announcement.

Hong Kong-based PAG Real Estate will manage the investment while the investors plan to invest a comparable volume into more assets in coming years.

Project Autumn, Hong Kong
Project Autumn, Hong Kong (image: Bouwinvest)

The biggest asset in the portfolio is the International Trade Tower office building in Hong Kong, Kowloon East.

“This investment fits our Asia-Pacific portfolio really well and is the latest step in our ambition to increase our exposure to offices and create a well-diversified international portfolio with a good sector mix,” said Tjarko Edzes, Bouwinvest director Asia-Pacific Investments.

“The investment strategy is focused on liquid markets and office buildings that generate an attractive cash flow with potential for growth.

“We aim to grow international investments to 40% of our total portfolio in the next few years after opening a regional office in Sydney earlier this year.”

The Dutch firm announced the opening its first overseas office in Australia in February this year, along with plans to deploy €1.5bn (US$1.7bn) into Asia Pacific’s real estate markets by 2021.

The company completed €300m worth of transactions in Asia Pacific last year.

It acquired a 50% stake as a founding investor in a €155m residential-for-rent portfolio in Tokyo, and co-invested in a Hong Kong retail portfolio and a prime logistics site in Singapore.

Bouwinvest also invested in a partnership targeting student housing in Australia, as well as a club deal focused on residential-for-rent properties in Shanghai.

The push into Asia Pacific comes as the firm works towards its AUM goal of €15bn by 2021 and continues to expand globally, with plans to open a second international office in New York this year.

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