New S$1b fund set up to invest in prime properties in Asia

A new fund has been jointly set up by Pacific Star Group and HSH Real Estate – which is the real estate unit of HSH Nordbank – to invest in prime properties in Asia.

It has a target fund size of 500 million euros (S$1 billion).

The fund will initially target established markets, which include Singapore, Japan and South Korea. It may also tap emerging markets like China and India eventually.

HSH Real Estate will raise capital from German institutional and private investors, while Pacific Star will be responsible for acquiring and managing suitable real estate projects.

HSH Real Estate said European investors are increasingly focusing on the Asia-Pacific region.

As such, the region is expected to benefit from a larger share of global real estate investments.

Pacific Star Group is better known for launching the Macquarie MEAG Prime REIT worth US$845 million.

It is also behind three other funds – the US$580 million Eureka Office Fund, the US$1.6 billion Asia Real Estate Income Fund, and the US$600 million Baitak Asian Real Estate Fund.

Source : Channel NewsAsia – 5 Oct 2007

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