Dutch pension fund manager PGGM is investing in Asia real estate via a S$360m (€228m) separate account investment mandate with Singapore-based Alpha Investment Partners.
The investment into what is known as the Alpha Asia Separate Account can potentially be upsized to S$680m.
Alpha Partners, a private fund management arm of Keppel Capital, said there was provision for “a top-up” option of up to S$320m.
The fund will focus on core-plus opportunities, predominantly in commercial real estate in key cities in Japan and China, as well as in Singapore.
PGGM first invested with various Alpha-managed funds more than 15 years ago.
Alvin Mah, CEO of Alpha, said: “We are heartened by the continued trust that PGGM has placed in us, especially in the current challenging environment.”
Mah said the latest investment mandate “bears testimony to the confidence that institutional investors have in Alpha’s capabilities to deliver sound returns for our investors”.
“Following the success of our previous investments with Alpha, we are delighted to be able to expand our relationship,” Mah said.
In a joint statement, Jikke de Wit and Ping Ip from PGGM Private Real Estate said: “This investment reflects our confidence in Asia’s long-term growth prospects, and Alpha’s ability to identify attractive opportunities in these markets.”
A spokesperson for Alpha Partners told IPE Real Assets that the firm managed separate accounts (such as that with PGGM) for other investors, but she was unable to disclose further details.
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