TH Real Estate has launched a $2bn (鈧�1.75bn) open-ended core property Asia-Pacific cities fund.
91传媒在线 reported a year ago that the $115bn manager was planning to launch Asia Pacific Cities Fund to invest in core real estate in the region.
TH Real Estate said it has seeded the fund with its first asset, an office tower in Sydney, purchased today for AUD180m (鈧�114.9m). The manager鈥檚 parent company, TIAA, has committed an initial co-investment of $200m.
The fund has an overall target size of more than $2bn over a five-year period and expects a long-term return of 7-10% per annum.
The vehicle -which is modelled on TH Real Estate鈥檚 - will focus on 17 principal cities, including Sydney, Tokyo, Brisbane, Singapore and Seoul.
Louise Kavanagh, TH Real Estate鈥檚 Hong Kong-based managing director, said: 鈥淭he Asia Pacific Cities Fund is designed to offer investors access to what we term future-proof, resilient cities in an exciting growing region.鈥�
Kavanagh said her team would use a granular approach to stock selection, focussing on asset and submarket drivers to complement a cities-based approach and to enhance returns to clients.
鈥淥ur long-term investment approach seeks strong returns through market cycles, underpinned by structural trends for long-term growth, tapping into Asia-Pacific鈥檚 growing economic dominance,鈥� she said.
Nick Evans, TH Real Estate鈥檚 executive director and head of Australia, said: 鈥淚t鈥檚 positive to see that Sydney 鈥� the nerve centre of Australia鈥檚 commercial and financial activities 鈥� has led the charge in being home to the fund鈥檚 first asset.鈥�
Evans told 91传媒在线 that the firm had a strong, credible team in Australia which had been able to access assets such as 183 Clarence Street, a heritage building which will be redeveloped into an iconic office tower,
鈥淭his is what we can do. We are able to add value and create core assets,鈥� he said.
The Asia Pacific Cities Fund follows on from TH Real Estate鈥檚 flagship European Cities Fund, launched in 2016.
