Asian Real Estate Securities Now Offered To Retail Investors

Source : The Straits Times, Feb 20, 2008

REAL estate has been the hottest investment topic in Singapore over the last year or so, and now retail investors have a new avenue for investing in Asia’s property market.

An arm of Deutsche Bank - RREEF - on Monday launched three new funds investing in property , backed by a belief that the sector has plenty of upside in Asia.

Asian real estate is at an ‘early stage of a long-term structural uplift’, said RREEF Asia Pacific real estate securities head Daniel Ekins.

RREEF said these new funds - previously exclusive to institutional and wealthy investors - are now offered to local retail investors. A minimum investment of US$1,000 (S$1,400) is needed.

‘Asia’s rising prosperity and consistent high economic growth have driven greater demand for residential and commercial real estate, creating exceptional growth potential for real estate securities in the region,’ said Mr Ekins.

Asia-listed real estate developers and real estate investment trusts (Reits) look set to deliver as much as a 20 per cent profit growth this year, he added. Global real estate securities have outperformed global stocks by 12.5 per cent and bonds by 24.6 per cent over a five-year period, the bank said.

One of the funds, the Asia-Pacific Real Estate Securities Fund, has a pure Asian focus, and will add to a growing crop of similar products, including the Barclays Asian Real Estate Income Fund and the Henderson Asia-Pacific Property Equity Fund.

Mr Ekins expects yearly returns of 12 per cent to 17 per cent in about five years.

Reits will comprise 20 per cent of the fund’s investment, while the remaining consists of publicly traded firms that own, develop or manage real estate.

RREEF has 65.2 billion euros (S$135 billion) in assets under management worldwide, with 10 billion euros in the Asia-Pacific.