TH Real Estate has launched an open-ended property fund that invests in 17 principal and progressive cities across Asia Pacific.
The Asia Pacific Cities fund focuses on office, retail, industrial and residential assets in selected cities such as Tokyo, Sydney, Brisbane, Singapore and Seoul.
Managed by the company’s real estate manager Louise Kavanagh, the fund is designed to offer investors access to what TH Real Estate considers as ‘future-proof’, resilient cities in an exciting growing region.
‘We will use a granular approach to stock selection, focusing on asset and submarket drivers to complement our cities-based approach, and enhance returns for our clients,’ Kavanagh, said.
The new fund has an overall target size of over $2 billion over a five-year period and aims to achieve a long-term target return of 7% to 10% per annum.
TH Real Estate’s parent company, Teachers Insurance and Annuity Association of America, has already committed an initial co-investment of $200million.
In addition, the fund has also secured its first asset in the central business district of Sydney, Australia’s largest and most liquid institutional real estate market.
Global resilient cities series
The Asia Pacific Cities fund follows on from the success of TH Real Estate’s flagship European Cities fund, which was launched in 2016 and invests in income-producing properties in ‘future-proof’ cities across Europe.
It is the fourth in the TH Real Estate’s global resilient cities series, which seeks to invest in high-quality assets in leading cities that are well-positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.