Managers are launching several new core open-end funds targeting Asia Pacific, signalling Asia Pacific real estate markets are maturing and offering more options for institutional investors.

Global investors traditionally have looked to Asia for shorter-term, higher-risk value-added or opportunistic strategies. Five years ago, outside investors would generally only go to Asia to achieve high returns because it was not seen as a core market, says Ian Schilling, managing director, head of core funds, Asia Pacific with Invesco Real Estate in Sydney. “In many cases, that has now changed,” observes Schilling.

“We are seeing a growing number of investors looking for more conservative and diversified strategies in Asia,” says Eduard Wehry, managing director and head of business development, Asia Pacific for PGIM Real Estate in Hong Kong. “This is one of the drivers of the growing demand for core and core-plus regional funds.”

The funds provide institutional