While global private real estate fundraising dipped in H1 2022 – by 14 percent, to $72 billion – compared with the first six months of the preceding year, it was a different story in Asia-Pacific, where it hit a new peak. The first half of this year has seen more capital raised for Asian real estate than in the first – or indeed last – six months of any other year.
At $16.62 billion, H1 2022 surpasses the previous record, set in H1 2018 at $15.12 billion, and is enough to beat the full year total for six out of the last 10 years. GLP accounts for a significant slice of that pie.
The Singapore-based logistics giant is responsible for the largest fundraise of the year – not just in Asia-Pacific, but globally – with GLP China Income Partners V, a $5 billion core-plus fund. In total it accounts for three of the largest five funds raised for Asia-Pacific in H1 2022, and three of the top 10 globally.
In Asia-Pacific, GLP has been joined not least by the likes of PAG and Bain Capital, which each raised $2 billion-plus funds in H1 2022. However, while the Asian fundraising scene is becoming dominated by fewer, larger funds, there is also change afoot in the strategies that are being targeted.
Core and value-add strategies have – temporarily at least – dropped out of favor, with no funds closed in H1 2022 targeting either strategy, despite both being well represented in each of the previous several years.
Indeed, core funds had accounted for an average of 16 percent of capital raised over the previous three years, while value-add funds accounted for as much as 37 percent in 2021.
Value-add funds, at least, are targeting a comeback, with three of the 10 largest funds in market as of late July intending to implement such a strategy.
They are set to be joined by Blackstone’s $9 billion Asian mega-fund, suggesting that Asia can continue to defy any broader slowdown for a good while yet.