US-based Invesco has raised almost $500m (€463.5m) for its latest value-add Asia real estate fund.

With gearing, typically of around 50% to 60%, the capital raised by the Invesco Real Estate Asia Fund IV fund currently, will give it a billion-dollar purchasing power.

Its early investors include the Teacher Retirement System of Texas, which invested $100m, and Maine Public Employees Retirement System (PERS) with $30m.

It is thought that the fund, which has a $750m hard cap target, secured $380m and a further $125m for a sidecar to the fund.

Invesco Real Estate declined to comment on the fundraising.

However, industry sources said the fund was launched late last year and had already committed to acquire a large logistics asset in South Korea, where Invesco has a local presence and other Invesco-managed funds have actively invested.

It is understood that the latest fund will look for assets mostly in key gateway markets in Asia Pacific, including Korea, Australia and Japan.

It is likely to hold a “patient” view on China but if it were to enter that market, it is expected to focus on Beijing and Shanghai, which have a more liquid real estate market than the rest of the country.

An investor said:  “We like the fact that they have not tried to ‘time the markets’, instead they focus on creating value and structuring investments with downside protection.

“They appear to be well-positioned to manage through the recent market turmoil.”

This source said with the latest value-add fund, Invesco could be expected to seek out mispriced assets which were likely to emerge from further market dislocation, caused by the global pandemic.

Topics