Real estate investment manager Savills Investment Management (Savills IM) has launched its first pan-Asia income and growth fund with a targeted investment volume of 1 billion euros ($1.2 billion).
The total investment volume will include a maximum debt ratio of 60% at the fund level, Savills IM said in an announcement. The firm has secured the first close for the vehicle, Savills IM Asia Pacific Income and Growth Fund (APACIG), at about 95 million euros ($115 million).
APACIG will focus on core-plus investments, with the potential to offer co-investment opportunities, Savills IM said. The fund targets an IRR in the region of 8-10%, with investments focused on assets including offices, logistics/industrial, retail and residential in Asia Pacific’s developed markets and key gateway cities.
APACIG has secured two acquisitions at 190 million euros, bringing Savills IM’s total assets under management in Australia to 260 million euros, it said.
The two properties are an 11-storey office building at 241 O’Riordan Street, located 7 kilometres from Sydney’s central business district and Clifford Gardens Shopping Centre, a nine-hectare site located in Toowoomba, Australia’s second-largest inland city.
Savills IM has also poached BlackRock’s APAC real estate business CIO Greg Lapham to spearhead APACIG. He will lead the newly appointed investment team in Sydney, which includes investment director Guy Sainsbury, who recently joined Savills IM from Lendlease; investment manager Anthony Lupis; and analyst Jacob van Egmond.
“The Asia-Pacific real estate market offers investors strong economic growth across a diverse set of investment opportunities. Due to its transparency, Australia is an important and attractive destination for real estate investments. It will play a prominent role in our continued expansion in the Asia Pacific region,” Lapham said.
“It’s likely that the next deal will be in Japan where we have a strong investment presence and where we believe growth prospects in certain sectors are also very positive,” he added.
Savills IM manages properties worth around 1.3 billion euros in the Asia Pacific region with local offices in Singapore, Tokyo, Kuala Lumpur and Sydney.