Henderson Global Investors, an independent asset management firm with US$93.8 billion worth of assets as of end-2009, is introducing a set of property equity funds in China.
Citibank China will exclusively distribute the Henderson Horizon Global Property Equities Fund, Henderson Horizon Pan European Property Equities Fund and Henderson Horizon Asia-Pacific Property Equities Fund.
According to Henderson, the funds will invest in commercial property stocks and real estate investment trusts (REITs), with strong emphasis on sustainable dividend yields from rental leases, cash flow growth and quality management.
Property investment is seeing a growing appetite among Asians, according to Alexander Henderson, managing director of Henderson in Asia.
As of 31 December 2009, Henderson has around US$16.7 billion worth of property assets under management and has 200 people worldwide who focus on property, covering all aspects from asset management to market forecasting.
“For Asia, we expect property to continue its growth in 2010, and Asian developers and landlords should continue to outperform their Western counterparts,” said Frankie Lee, head of property equities in Asia.
“Equity capital is also looking to migrate into the region in the form of direct real estate and private equity funds. It is this healthy capital base, combined with the strong GDP outlook of all countries in the region that should continue to drive the outperformance of Asian real estate in 2010.”
Mr. Lee manages the Henderson Horizon Asia-Pacific Property Equities Fund.
“A theme we remain excited about is growth in office rents and capital values, especially in the mature financial centres of Hong Kong and Singapore. The leasing environment has been improving incrementally on the back of stronger job growth expectations, and supply of prime Grade A offices in core business districts remains moderate,” he said, referring to the fund’s strategy.
He also identified the commercial market in Japan as one with plenty of potential for a strong recovery. “The market is still focused on current weakness in occupancies and hence valuations of office developers remain attractive,” he said.