Aberdeen Asset Management Asia launched its third closed-ended property fund of funds for institutional investors on 12 July.
Aberdeen Investment Management has set its goal of raising US$300 million to US$400 million from investors worldwide to be added to the approximately US$1 billion it already advises and manages in Asian property.
It aims to create a diversified portfolio of “best-in-class” real estate funds in the region, which include emerging markets such as India and China and mature markets such as Australia, Japan and Singapore.
With the target somewhere between 50 and 60 percent, the fund aims to deliver 13 to 17 percent in annual returns, said Aberdeen.
The London Stock Exchange-listed company added that current Asian property products performed well last year, with returns ranging from 13.3 to 25.7 percent.
“Having built a substantial specialist equity and now a growing fixed income business over the past twenty years, property stands as the next asset class that is ripe for expansion,” noted Hugh Young, Managing Director of Aberdeen Asia.
”We’ve already made strides and have high hopes that with this launch, our diversification can successfully continue.”
The new fund will be managed by five professionals in Singapore under the guidance of Puay Ju Kang, Aberdeen’s Head of Property for the Asia Pacific region. Her group will determine the best strategy for every market based on its property cycle, as well as the right management and structure.
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