GLOBAL - APG, which manages the assets of the largest Dutch pension fund ABP, said it plans to increase its Asian real estate exposure by €1bn within the next five years.

In a bid to capitalise on the economic growth in the region, the investment manager will look to increase the €4bn in real estate assets it currently has invested in Asia Pacific significantly, taking its exposure from 21% to 24% of global property assets.

Daan Van Aert, head of strategic real estate at APG Investment Asia, said the fund planned to invest in residential properties in emerging markets, such as China and India.

He added that APG was seeking to profit from rising housing demand in these markets as the middle class continued to grow.

Currently, close to 80% of APG's real estate investment in Asia is allocated to developed countries, including Japan, Australia, Hong Kong, Singapore and Korea.

The investment manager has focused on retail and logistics sectors in these markets, but will now focus on residential for those that are less developed.

Van Aert also said APG was reluctant to make further investments in Japan due to the economic climate and relatively low property yields there.