Asia Property Fundraising Slid 6% In 2022

Office Finder Team

February 2, 2023

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ASIA PACIFIC – Data from Realfin showed that while overall fundraising for private funds with mandates to invest in real estate across the region dipped by 6 percent year-on-year in 2022, it still greatly outperformed fundraising by their European counterparts, reported Mingtiandi on Wednesday evening (1 February, SGT).

Last year, 79 Asia Pacific property funds successfully raised a total of US$30 billion. In comparison, 75 European real estate funds raised US$25.8 billion, while North American counterparts raised US$91.8 billion. However, the tally for North America and Europe fell by 26 percent and 50 percent respectively. The data only includes property funds that have reached any stage of financial close.

“Our annual report shows that the global private real estate is alive but not quite well and, above all, unsure of itself as we enter 2023. The defensiveness that set in in the second half of 2022 has weighed heavily but it is now uncertainty that is governing,” commented Riz Malik, Chief Executive of data provider Realfin.

For Asia Pacific real estate funds, the most popular asset type was industrial as it attracted 48.9 percent of the fresh capital raised in 2022. This was followed by diversified properties (33.3 percent), residential (8.5 percent), office space (7.7 percent), retail units (2.2 percent) and hospitality assets (1.7 percent).

By investment strategies, opportunistic strategies drew in 42.3 percent of the capital raised. This is followed by core strategies (37.6 percent), debt/leverage (13 percent), value-add strategies (5.5 percent) and core-plus (1.5 percent).

Moreover, Realfin ranked Asia-based property fund managers based on the amount raised in the 5 years to 2022. Singapore’s GLP clinched the number one spot with US$33.4 billion, followed by Hong Kong-listed ESR (US$10.2 billion), Beijing-based Sino-Ocean Capital (US$7.4 billion), Gaw Capital Partners (US$6.2 billion) and Singapore’s CapitaLand (US$5.8 billion).

Globally, GLP was ranked 3rd. Blackstone took the crown with US$88.3 billion in capital raised, followed by Brookfield (US$49.8 billion).

By target geographies, the lion’s share or 49.7 percent of fresh capital raised in 2022 is intended for real estate in North America. This is followed by multi-regional (19.7 percent), Asia Pacific (16.1 percent) and Europe (14.1 percent).