AMP Capital Investors, the fund management arm of life insurer AMP, aims to raise up to A$3 billion ($1.94 billion; €1.51 billion) for a fund investing in Japanese shopping malls and Singapore offices.
“We are looking outside Australia,” Simon Vinson, head of Asian property for AMP told Reuters.
He said AMP wanted to take advantage of opportunities as the credit crunch hits the retail sector in Japan. The firm also intends to invest in offices outside of Singapore’s main financial district as well as industrial premises.
Australian institutional investors are over-allocated to property because the value of their shares have plummeted. In response, AMP is looking elsewhere to raise equity. “Sovereign wealth funds are continuing to put money into real estate, and the US and Europe are traditionally good sources of equity for investment outside their own markets,” he pointed out.
According to another wire report AMP is also considering raising a vehicle to invest in distressed property in Vietnam.
AMP manages more than A$101 billion of assets.