SINGAPORE, Sept 16 U.S. fund manager Franklin
Templeton plans to launch a new Asian property fund of funds
and hopes to raise about $300 million from institutional
investors in Europe and Australia, a company official said on
The new fund, which will invest across the Asia-Pacific
region, aims to deliver investors an annualised return of 15
percent after taxes and fees, said Glenn U'ren, a managing
director at Franklin Templeton Real Estate Advisors.
Franklin Templeton Real Estate Advisors, which has about
$4.5 billion invested with about 90 funds globally, will earn
performance fees if net returns exceed 10 percent.
U'ren said Franklin Templeton was currently looking to park
money with private equity funds that specialise in buying
non-performing loans tied to property investments in Japan.
Another area of interest was mass residential housing in
China and India aimed at young and mid-level executives, while
a third strategy was "asset repositioning" which involved
buying poorly managed or poorly designed commercial property
that the manager could improve.
"After 12 months, new strategies could arise," he said.
U'ren added that he was wary of "high-end residential in
any of China's coastal cities", given the sharp run-up in
prices over the past 2-3 years.
But while segments of China's real estate market appeared
bubbly, there may not be a sharp correction as many investors
had deep pockets and could ride out a downturn in the property
market, he said.
"Unless you have to give your keys back to the bank, you
are still in the game."
(Reporting by Kevin Lim; Editing by Raju Gopalakrishnan)