JP Morgan Asset Management has bought 鈥� direct real estate investment platform.
The deal sees the take on Aviva Investors鈥� existing core and value-added real estate funds and includes Aviva鈥檚 operations in Australia, as well as Japan and Singapore.
Aviva Investors鈥� Asia Pacific Property Fund has typically aimed for a blend of income and capital growth, investing in direct commercial real estate.
Key investments made by the fund include the Shore City mall in New Zealand and the Alinta Plaza office asset in Perth, Australia.
The fund has also invested in Tokyo鈥檚 office and industrial sectors.
It can invest up to 30% in cash and , including REITs.
As of October, the 拢193.8m (鈧�244.3m) fund was 80.3% weighted to property and 19.7% to cash, according to a factsheet.
The open-ended fund, which launched in late 2008, has also invested in China, Hong Kong, India, Malaysia, New Zealand, South Korea and Taiwan.
Managed by Daniel McDonald since 2010, the fund has respective 37% and 32% weightings to office and retail.
JP Morgan Asset Management said Aviva Investors鈥� multi-manager activity in the Asia Pacific region did not form part of the sale.
Joe Azelby, head of global real assets, said growing in the region had been a 鈥渟trategic imperative鈥�.
The investment manager, in Asian property since 2006, said the acquisition adds real estate presence in India and .
鈥淲e have expanded our real estate investment capabilities, across the full risk spectrum from core to opportunistic strategies, to help our clients increase their allocations to dynamic growth markets in Asia Pacific,鈥� Azelby added.
Around 16 Aviva staff in Hong Kong, Mumbai, Singapore, Shanghai and Sydney will transfer to JP Morgan Asset Management鈥檚 global real assets team.
A sixth office is due to open early next year in . Aviva Investors, with Secured Capital Investment Management, last year closed the Tokyo Recovery Fund, raising $300m and exceeding its initial $250m equity target.
Writing in October, Aviva Investors鈥� McDonald said: 鈥淲e expect core real estate in Japan 鈥� in particular, Tokyo 鈥� to continue to be in strong demand in investors鈥� flight to safety.鈥�
What direction the fund鈥檚 new owners decide to take it in remains to be seen.
McDonald said the fund favours 鈥渓ong-term strategic investment鈥� in China.
The retail sector, he wrote, 鈥渞emains one of the most stable sectors in the APAC region鈥�.
鈥淲e continue to favour non-discretionary retail,鈥� he added.
鈥淭he recovery momentum of the industrial sector is building, and we continue to favour the logistics sector in the Eastern seaboard of Australia, in particular Sydney and Melbourne.鈥�
