ASCENDAS, one of Asia's largest suppliers of business space, yesterday unveiled a new fund that will invest up to US$1 billion mainly in Vietnam, Malaysia and the Philippines.
At the first closing of the Ascendas Asean Business Space Fund yesterday, the fund's size stood at some US$200 million, Ascendas said.
'From its initial size of US$200 million, we target to grow the fund to US$400 million eventually with an asset size worth about US$1 billion,' said Ong Beng Kheong, Ascendas' chief executive for its Southeast Asia operations.
The fund will look at assets in the 'key re-emerging markets' of Vietnam, Malaysia and the Philippines.
Ascendas will hold a stake of about 30 per cent in the fund. The remaining 70 per cent will be held by international and Singapore-based investors, including General Electric (GE) Real Estate Investment Holdings, Singapore Press Holdings and Shinsei Bank.
The fund intends to invest in assets such as central business district and suburban office space, technology-related facilities and biotech and IT-related assets.
It will also look at mixed development projects and industrial and logistics facilities.
For starters, the fund will invest in Peremba Square, an office park in Subang Jaya, Malaysia, which now houses the head offices of Kodak, Mitsubishi Motors and other blue-chip tenants.
The fund will also buy land in Subang Jaya to develop a 120,000 sq ft logistics hub, which is expected to be completed in mid-2008.
Chong Siak Ching, chief executive of Ascendas, said that the strong growth in the industrial, IT and business process outsourcing sectors has created greater demand for high-quality business space.
Ascendas can help in setting new benchmarks for business space solutions in new markets, she said.
The Asean Fund is the latest addition to Ascendas' portfolio of real estate funds, and marks its move into developing its regional fund management business.
The company recently launched the Ascendas India Development Trust, a fund focusing on mixed development projects in India.
