AirTrunk opened its first data centres in Asia last year after Macquarie acquired the firm
After backing successful ventures around the region in logistics, data centres and other fast-growing sectors, Macquarie Asset Management on Wednesday announced the closing of A$1.1 billion ($850 million) in equity commitments for a new opportunistic real estate fund focused on Asia Pacific.
The asset management division of the Aussie investment bank said in a statement that the new strategy has a flexible mandate to invest in specialist platforms and direct real estate while pursuing opportunities in APAC’s developed markets arising from recent market dislocation.
Brett Robson, Macquarie Asset Management’s head of real estate, pointed to the impact of COVID-19 as a trend accelerator, creating opportunities for real estate investors.
“Global megatrends including shifting demographics, digitalisation and urbanisation are driving the need for real estate development and investment,” Robson said. “The market dislocation we’ve seen over the past 18 months has acted as an accelerator in many areas, creating opportunities across Asia-Pacific.”
Sheds and Servers
The company, which is the parent of Macquarie Infrastructure and Real Assets, said the new partnership had reached its hard cap thanks to the support of institutional investors, without revealing the identities of limited partners in the vehicle.
Brett Robson of Macquarie
The latest fund builds on Macquarie Asset Management’s experience in the region, having invested more than $12 billion in APAC real estate opportunities alongside partners.
In the second quarter of last year, the firm acquired an 88 percent stake in Australian data centre operator AirTrunk in a deal that valued the company at A$3 billion. Since that time, the firm has been expanding into Asia, including opening its first data centres in Hong Kong and Singapore last December.
In 2018, Macquarie partnered with Greystar to launch the US apartment developer’s first Asia rental housing fund, which reached a $450 million first closing in 2019. That partnership has since expanded through tie-ups with Dutch pension fund manager APG and other investors, culminating in a A$1.3 billion Aussie-focused vehicle that closed in January of this year.
The firm has also been successful in logistics after backing Logos Property from 2014. With the Sydney-based developer now one of APAC’s biggest warehouse builders, Macquarie sold its stake to Singapore’s ARA Asset Management in 2020.
2021 Transitions
Jelte Bakker, Macquarie Asset Management’s head of Asia Pacific real estate, described the latest fundraising as a key milestone for the business.
“We have a long history of investing in opportunistic real estate in the region and look forward to putting this experience to work for our clients through the partnership,” Bakker said.
As of 31 March 2021, Macquarie Asset Management had assets under management of A$562.2 billion. The fund manager employs over 1,900 people across 20 markets in Australia, the Americas, Europe and Asia.
As the company looks to deploy its fresh capital in Asia, it may have some fresh hands signing the checks after senior director Andrew Taylor left the firm recently to take on a new role with Hong Kong’s CSI Properties.
The company also reduced its exposure to the Asia retail sector as it joined with the Abu Dhabi Investment Authority in selling the Pradera Asia mall portfolio to Brookfield for $1.4 billion earlier this month.
Macquarie had worked with the UK’s Pradera Retail to set up the China shopping centre joint venture, with ADIA joining as the primary financial backer.
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