Singapore: RREEF, one of the world’s biggest property fund managers, will spend at least 30% of its future private equity funds in Asia, with Japan, China and India its favourite markets, an executive said on Monday.
Speaking at the Reuters Real Estate Summit, RREEF’s Asia-Pacific chief executive Kurt Roeloffs said he was undeterred by a rush of capital into the region, saying that only specific deals, rather than whole markets, were overpriced.
“When we look at what we intend to do in our private equity series of funds, we hope we will invest at least 30% of those funds in Asia generally,” Roeloffs said.
“And the three main markets we will do that in are Japan, China and India, and probably in that order.”
RREEF raised a $1.6 billion global fund for property in 2005, but Roeloffs declined to comment on when new funds would be raised and their potential size.
Private equity funds for property are growing bigger than ever, with Morgan Stanley saying last week it had raised $8 billion and Goldman Sachs pooling $4 billion. Morgan Stanley has earmarked around 60% of its fund for Asia.
RREEF, the property investment unit of Deutsche Bank, has 54 billion euros ($72.73 billion, Rs2,91000 crore) in assets under management.