AEW Capital raises $1.54b for fourth Asia Pacific value-add fund

Photo: Bloomberg

Boston-headquartered AEW Capital Management, one of the world’s largest real estate investment managers, announced the final closing of its fourth Asia Pacific value-add fund with commitments totalling $1.54 billion.

The final amount raised for AEW Value Investors Asia IV exceeded the original target of $1.2 billion, with public and private pension funds as well as insurance companies based in Europe, the US, and Asia committing to it.

“This result not only reflects a sustained interest in institutional real estate in Asia Pacific among investors but also shows confidence in AEW’s execution in implementing a targeted value-add strategy,” said David Schaefer, CEO Asia Pacific for AEW.

The predecessor fund was capitalised with $1.12 billion, inclusive of co-investment capital. It made its final investment in 2019.

According to the announcement, the fourth fund will continue AEW’s value-add focus on the acquisition of logistics, multi-family, and office assets in key gateway cities across the Asia Pacific region, principally Singapore, Seoul, Beijing, Shanghai, Hong Kong, Sydney, Melbourne, Tokyo, and Osaka.

The fund is seeking to create value and drive overall returns through the repositioning, redevelopment, releasing, and refurbishment of commercial assets.

Founded in 1981, AEW Capital is one of the world’s largest real estate managers, with $88.6 billion of property and securities under management in North America, Europe, and Asia as of June 2021.

The final close of the Asia-focused value-add fund comes as AEW upgraded its average growth forecasts for 2021 across major markets in the region to 5.8%, year-on-year, from 5.0% in Q1.

Despite a slowdown in the global economy brought about by the effects of the health crisis, investors continue to plough more capital into real estate. Early this year, KKR & Co closed its first fund targeting real estate investments in Asia Pacific at $1.7 billion.

Warburg Pincus is also in the market to raise a $1.5-billion Asia real estate fund, its first vehicle with a dedicated focus on Asia’s burgeoning real estate market. It is also launching a special situations platform focused on the China real estate market.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.