Henderson Global Investors (Singapore) Limited, independent asset manager with S$8.2 billion assets under management (as at 31 March 2006) reports a record subscription of S$90 million when its third property equities fund, Henderson Asia-Pacific Property Equities Fund (HAPPE) closed on April 17. The fund size is now S$112 million (as at April 25, 2006).
Mr Alexander Henderson, Managing Director of Henderson in Asia, says, The popularity of the HAPPE affirms the growing demand for property equity investments among Singapore investors. Asias property equity market made good gains in recent months. Besides investing in Asia Pacific property equities, Singapore investors have also upped their property investment in other regional property funds such as the Henderson Global Property Equities Fund and the Henderson European Property Securities Fund. Similarly, the Luxembourg based mother funds have grown significantly too.
The fund size of the Luxembourg based Henderson Horizon Asia-Pacific Property Equities Fund is US$316 million; the Henderson Horizon Pan European Property Equities Fund is US$1.3 billion and the Henderson Horizon Global Property Equities Fund is US$208 million (as at April 25, 2006).
Strong demand and limited supply in Asia
Commenting on the growing popularity of property investment in Asia, Chris Reilly, Singapore-based Director of Property, Asia and lead fund manager of the HAPPE fund says, Strong demand and limited supply of Asia commercial and residential property continue to support stock prices in the property sector. The momentum appears sustainable in the medium term as domestic consumption and economic expansion gather pace. We believe that new issuance in the REIT sector in Asia is likely to offer other attractive investment opportunities in the near future.
Asian property equity markets made good gains in March. Singapore experienced double-digit growth in the property sector recently, largely due to the improving office sector and developer-oriented stocks. Buying interest in Japan continues as economic recovery gathers pace underpinned by improving property market fundamentals, says Mr Reilly.
On China, Mr Reilly said that the country delivered an impressive performance as companies exposed to the growing housing sector demonstrated strong earnings growth in the most recent results announcements. It also offers above average growth and return prospects.
As at 31 December 2005, the group had US$116 billion of assets under management, of which US$13.3 billion were property-related funds and equities. Henderson offers three property funds in Singapore. This includes the Henderson Asia-Pacific Property Equities Fund, Henderson European Property Securities Fund and the Henderson Global Property Equities Fund. The Luxembourg based Henderson Horizon Asia-Pacific Property Equities Fund, Henderson Horizon Pan European Property Equities Fund and the Henderson Horizon Global Property Equities Fund, which the Singapore feeder funds invest directly into, are also made available for sale in Singapore.