Bank of Ireland Private Banking recently completed a commitment of $130m to a fund investing across the broad Asian region.
The Bank’s Asian Real Estate Fund is invested in the Macquarie Global Property Asian Fund III in a broad range of property sectors including office, retail, residential and hotel. The Bank is targeting returns in excess of 15% per annum over 9 years on this fund. The fund can invest across a broad spectrum of Asian markets including Japan, South Korea, Hong Kong, Singapore, China and Malaysia.
“Asia has become the engine for economic growth globally and will consolidate this position further over the next decade”, said Jim Quill, CEO, Macquarie Global Property Advisors when addressing a recent property conference for private clients hosted by Bank of Ireland Private Banking. He further explained that, “strong demographics and economic growth will drive real estate returns in the region. In addition there is a shortage of Class A property in many locations which gives some really unique opportunities for organisations that can bring world class development and asset management skills to their investment programs”.
Peter Collins, Property Director, Bank of Ireland Private Banking said: “We have been increasing our investment allocation to Asia across our equity and property portfolios for a number of years and expect this trend to continue. In the Asian real estate market, the real challenge is access to product and having on the ground expertise is what are in many cases opaque markets and a world class capability in developing and managing new and existing properties. To this end, we are pleased to work with Macquarie Global Property Advisors, a recognised leader in Asian property markets with a local presence in 12 Asian markets.
“In Macquarie’s longer running property funds across Asia and Europe, they have generated an average return of 29% per annum. Local knowledge and experience of the very different challenges presented to investors in Asia are critical factors, hence we believe that the right partner is key to being a successful investor in the region”, added Peter Collins.
Private Banking’s recent Asian Real Estate Funds is the Bank’s second investment into Asia. The first was the purchase, on behalf of private clients, of an 18% stake in the €1.3bn development of the International Financial Centre in Seoul, Korea last year. The Bank expects to make further investments in this market.
Macquarie Global Property Advisors (MGPA) is a private equity firm focusing on real estate investments in Asia and Europe. Jointly owned by the Australian Macguarie Bank and its management, MGPA’s investments include development and re-development projects, joint ventures and entity-level platforms in real estate operating companies. The firm currently has over US$5 billion assets under management.
