Savills Investment Management is seeking to double its assets under management in Asia to $5 billion in the next few years, starting with raising a renminbi fund in 2018, Reuters reported, citing Savills CEO Justin O'Connor.
The real estate investment firm, which aims to take advantage of the rising popularity of real estate equity products in China amid stiffer debt-product oversight, will reach out to domestic investors for the fund, O'Connor told the news agency, without disclosing a fundraising target.
Reuters noted, citing O'Connor, that Savills is already looking for joint venture partners for various projects with a focus on modernizing outdated malls in smaller cities in China, and expects to strike a shopping mall transaction in a small Chinese city in 2018.
Also in 2018, Savills plans to set up a pan-Asia fund focusing on the developed market and offices, with a target of $1 billion or more in assets under management and high single-digit returns.
As part of this focus in Asia, O'Connor will be moving to Hong Kong from London in 2018, with the firm expected to get an asset management license in China in a few months, Reuters noted.
Savills' assets under management in Asia amount to $2 billion, more than 50% of which are in Japan, according to the report.
