Asia Pacific Infographics - Fund Expiration March 2016
In 2014, CBRE released The Great Wave of Fund Expiration, a special report which predicted that there will be wave of expirations of Asia Pacific-focused private equity real estate funds in 2015-2016. CBRE data shows that there are strong fund disposal activities in 2015 stood at US$25.5 billion, a figure 37% higher that the five-year average of US$18.7 billion.
However, of the 50 funds CBRE estimated to expire in 2015 and 2016, only 22% of the funds terminated as planned. Most of the funds extended their fund life or are still reviewing their exit strategies. CBRE have seen fund managers disposing of the saleable assets in their portfolio first, particularly those situated in high liquid markets, such as Japan and Australia. Assets in less liquid markets such as China are proving more challenging to dispose of. Our research found that at least one third of the outstanding assets to be disposed in the region remain in China and mostly are situated in lower-tier cities.
This infographic will provide an update on fund expiry and what fund managers should do with their remaining assets in their portfolio.