Savills Investment Management (Savills IM), the international real estate investment manager, has launched a pan-Asian income and growth fund following the first close at c. €95 million which is immediately being invested.
The Savills IM Asia-Pacific Income and Growth Fund (APACIG) focuses on core-plus investments and incorporates a defined value-add component, with the potential to offer co-investment opportunities. APACIG targets an IRR in the region of 8-10 percent, with investments focused on Asia-Pacific’s developed markets and key gateway cities to capitalize on their stability, resilience, and liquidity. The fund is available to institutional investors.
The fund targets sector diversity and will include offices, logistics/industrial, retail and residential. The target total investment volume is approximately E€1 billion including a maximum debt ratio of a maximum of 60 percent at the fund level.
In line with Savills IM’s Responsible Investment Policy, APACIG has sustainable characteristics and will set targets across each of the assets to reduce its environmental impact in areas including energy, water, waste, as well as enhancing social value through occupier and community engagement. It is targeting both buildings which can provide a value add opportunity for improving the sustainability credentials of these assets through retrofitting, and buildings with high sustainability characteristics.