ONE of the world's largest property managers RREEF, intends spending at least 30% of its future private equity funds in Asia, with Japan, China and India its favourite markets the firm has announced.
Speaking at the Reuters Real Estate Summit in
He said that only specific deals, rather than whole markets, were “overpriced”.
“When we look at what we intend to do in our private equity series of funds, we hope we will invest at least 30 percent of those funds in
He added that
RREEF, which is the property investment unit of Deutsche Bank, has $US72.73 billion in assets under management.
According to Reuters, RREEF raised a $US1.6 billion global fund for property in 2005.
“There are no markets we’d avoid because of the weight of capital, but there are some transactions we’d avoid,” he told the Reuters conference.
“You see specific transactions where too many people are pursuing, and it gets priced wrong. Meanwhile, the transaction next door is reasonably priced.”
Reuters says in
Reuters added that rents climbed 55% last year as vacancy rates dropped to 0.7%.
According to Reuters, analysts believe rents could still rise another 60 to 70% to a cyclical peak around 2010.
“The office sector is still very interesting in
RREEF made its first investment in
Reuters revealed that earlier this week, RREEF would team up with private equity firm H&Q Asia Pacific to invest $550 million to build at least 25 China hotels.
Roeloffs said a construction boom meant some investors would get burnt. Other major overseas investors in
“There’s a lot of supply in the Chinese market, both commercial and residential.”
Australian Property Journal
