Fundraising for Asia-Pacific private real estate is growing. The amount of capital raised on a rolling five-year basis by the top 50 managers, as tracked by PERE’s APAC Fund Manager Guide, is up more than 7 percent in 2021 compared with 2020, at $91.8 billion.
The first half of 2021 saw $8 billion of Asia-Pacific-focused private real estate fundraising – by all firms, not just those that make up the PERE APAC Fund Manager Guide – which compares with just $5.7 billion in H2 2020, providing another encouraging marker of recovery.
Country-specific funds appear to be going out of favor. In 2018, $16.7 billion of capital was raised for country-specific funds, a year in which $32.3 billion was raised overall (thus representing just over 50 percent), whereas the totals for 2019 and 2020 equated to 30.4 percent and 36.5 percent. Only three of the 10 largest funds in market have a sole-country focus.
The most popular strategy for funds that closed in H1 2021 was value-add, with the long-dominant opportunistic strategy slipping behind both that strategy and core-plus.