Asia open-ended core funds gain traction

The number of open-ended core private real estate funds raised in Asia Pacific total 36 to date, double than what were raised a decade earlier, a report by property consultancy JLL has estimated.

The demand for open-ended core funds in Asia Pacific is increasing, as investors seek long-term diversification and stabilized, income-orientated returns that reflect a shift in preference from short-term opportunistic investing in the region, according to research by property consultancy JLL.

JLL has estimated that the total number of open-ended core vehicles in the region has doubled in the past decade from 18 funds in 2007 to 36 funds today.

Over the past two years, open-ended funds have also attracted more equity than their close-end counterparts. In 2014 and 2015 combined, Asia Pacific’s open-ended core vehicles are believed to have attracted 50 percent more capital than closed-ended vehicles, JLL noted.

And with the anticipated growth in investible stock in the region, the demand for these funds is expected to continue. By 2020, Asia Pacific’s investible stock will grow by 28 percent, surpassing Europe by approximately $2 trillion.