US-headquartered urban redeveloper Building AQuisition Partners United said it is looking at roping in Asian investors, especially those from Hong Kong and Southeast Asia, to its $100-million real estate fund.
The fund focuses on the acquisition of roughly 400 commercial real estate assets in the Chicago area as part of the largest redevelopment endeavor that the city has experienced in over three decades, the company said.
The firm targets Hong Kong’s wealthy residents who are boosting their cash holdings to multiyear highs as the ongoing US-China trade war and the political unrest hint to a recession.
According to consultancy Capgemini, rich Hong Kong individuals are holding close to a third of their total holdings in cash, the most since the 2008 financial crisis.
Eva Law, founder and chairperson of the Association of Family Offices in Asia, said some of the major discussions related to direct investing have been parked for a while due to political unrest and fears of the coronavirus.
A separate report from UBS noted that over half of family offices in Asia rebalanced their portfolios in March, April, and May to keep their long-term strategic asset allocation.
In a press release, Building AQuisition said the fund will focus on buying value-add and stabilised assets, with the aim of rapidly upgrading them into the next asset class.
“Ultimately, the goal is the rebuilding of a community, making it a new haven for economic activity, employment, healthy food, and access to parks and recreation,” it said.
The fund will participate in the Chicago Neighborhood Initiatives, which was formed in 2010 to coordinate resources, economic development, and neighborhood revitalization efforts in Chicagoland’s low-to-moderate income neighborhoods.
Building AQuisition Partners United, founded by Tosin Oduwole, is an urban developer that aims to bring back the economic vibrancy of cities around the US via the massive acquisition and development of low, mid, and high-rise apartment buildings, and commercial real estate.