SEB Asset Management has announced the launch of two new Asian real estate funds, each targeting a size of EUR 600 mln.
SEB Asset Management has announced the launch of two new Asian real estate funds, each targeting a size of EUR 600 mln.
With commitments of EUR 100 mln so far, SEB Asian Property II and SEB Asia REI are aiming to reach an investment volume of EUR 1.2 bn, with 50% leverage, SEB AM said on Wednesday.
The funds will give investors the opportunity to invest in pan-Asian real estate portfolios, and will be managed by SEB AM's eight-strong team based in Singapore.
SEB Asia REI will pursue a core/core plus strategy and will primarily invest in existing fully-leased properties, but it will also be able to invest in development projects via forward-funding deals. Geographically, the portfolio allocation is focused on China, Japan, Singapore and South Korea. The average target return (BVI) is 8% per year; an average annual distribution of 5% is planned.
SEB Asian Property II - with a core plus/value added profile - aims to generate an IRR of 12% per year over a duration of eight years through active asset management. The investment focus is on office, retail, industrial and residential properties in China, Japan and selected locations in Singapore and South Korea. The allocation to development projects is limited to a maximum of 40%.
The move follows the launch in August 2007 of SEB Asian Property Fund I, a core investment vehicle with an internal rate of return (IRR) of 9%.
