ING Group NV’s asset management division has launched a new Asia-focused real estate fund based in Hong Kong. This fund will primarily invest in real estate companies and Real Estate Investment Trusts (REITs) across the Asian region.
While the fund is currently available only to retail investors in Hong Kong, ING is exploring possibilities to make it accessible in other regional markets in the future.
Justin Pica, the portfolio manager for the fund, believes the Asian real estate sector is well-positioned for growth due to robust economic conditions. He emphasizes that Asian real estate markets lack the maturity found in other regions, leading to a greater potential for expansion.
Pica projects that the market capitalization of real estate companies listed in Singapore and Hong Kong is anticipated to increase by 61% and 46%, respectively, by 2013. Additionally, he highlights the low correlation of real estate investments with traditional asset classes like equities and bonds, making it an attractive diversification option.
This latest venture strengthens ING Investment Management's footprint in Asia, where they already manage over US$2 billion in real estate assets.