AEW Capital to raise over $1b for fourth value-add fund for Asia

Justin Chin/Bloomberg

Boston-headquartered real estate investment manager AEW Capital Management is targeting to raise over $1 billion for its fourth value-add fund for Asia, AEW Value Investors Asia IV, according to industry sources.

The latest fund will be a successor to the $1.2-billion AEW Value Investors Asia III, which was closed in June 2018 after exceeding a $750-million initial target. The third fund focuses on the acquisition of assets in key gateway cities across the Asia Pacific, primarily Hong Kong, Singapore, Seoul, Shanghai and Sydney, as well as Beijing and Melbourne.

An industry executive, who asked to remain anonymous, said that a large chunk of the third Asia-focused value-add fund has been deployed, prompting AEW to plan for the fourth fund.

AEW Capital had not responded to a request for comment at the time of publishing.

The firm’s Asia Pacific team is currently raising two funds simultaneously. DealStreetAsia had earlier reported that AEW is in the market to raise a $750-million core-plus Asia-focused fund.

AEW had roped in Gillian Chee, former managing director of Singapore-based SC Capital Partners to lead the core-plus vehicle as a senior fund manager. However, Chee has left the investment firm less than four months after joining.

It is believed that AEW is eyeing to raise as much as $1 billion for the core-plus fund but its first close is likely to be delayed due to Chee’s departure.

We had also reported that the firm is raising a global value-add fund – AEW Global Investment Fund T, L.P. which has recently secured a $500 million commitment from the Teacher Retirement System of Texas (TRS). The vehicle will have an allocation for Asia but the total fund size is unknown.

Founded in 1981, AEW Capital is one of the world’s largest real estate managers, with $76 billion of property and securities under management in North America, Europe and Asia as of June 2019. In Asia Pacific, its AUM is about $3.6 billion.

Despite a slowdown in the global economy, investors continue to plough more capital into real estate. New York-based BlackRock is in the market to raise its fifth Asia-focused real estate fund and has gathered between $300 million and $350 million for the vehicle.

Another major investment firm KKR & Co. targets to raise $1.5 billion for its maiden Asia-focused real estate fund as it looks to deepen its real estate portfolio in the region. So far, the region’s record is still held by Blackstone, which gathered $7.1 billion for its second Asia opportunistic real estate fund.

Hong Kong-based PAG is now seeking to raise $2 billion for its eighth opportunistic real estate fund, which was launched about two months ago. Meanwhile, Gaw Capital Partners is also about to wrap up its sixth Asia opportunity real estate fund, having gathered $3 billion so far. The vehicle made its first close at $1.3 billion and had raised $650 million for a sidecar vehicle late last year.

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.