New York based fund manager Franklin Templeton Real Estate Advisors has held a final close of $383 million of equity for its Asian fund of funds. Investors in the fund come from the UK, Finland, Germany and Australia.
In a statement, Franklin Templeton Real Estate Advisors, the real estate arm of Franklin Templeton Investments, said the private, closed-ended fund will invest in funds across Asia, but not in listed property securities or direct property. The fund will be run by a team of 12 staff in Singapore who will report to US based Jack Foster, managing director and head of real estate at the firm, and managing director Glenn Uren.
Uren said: “Recent turmoil in the global markets and reduced access to financing have been creating unique investment opportunities in both the developed and emerging Asian property markets.”
He said savvy investors were “cautiously exploring” the region looking for undervalued and distressed assets. “It’s a unique investment climate in which to deploy capital. We believe that 2009 and 2010 should provide excellent opportunities for real estate investing in Asia.”
The firm told PERE that the fund, which has invested in eight funds so far, is targeting an internal rate of return of between 17 and 19 percent and an equity mulitplier of 1.8 times.
Franklin Templeton Real Estate Advisors, which has $5 billion of real estate assets under management in total, has invested in Asia for more than 12 years.