APG announces two new Asian investment partnerships

Dutch pension manager, APG, has announced two new investment partnerships in Asia in the areas of healthcare and real estate.

The first is a partnership with CBC Group (CBC), Asia’s largest healthcare-dedicated investment form. The two have joined forces to launch CBC Healthcare Infrastructure Platform (CBC HIP) and China-focused life science venture, CBC China Life Science Infrastructure Venture (CLSIV).

CLSIV has held a first close of USD 500m with a hard cap of USD 1.5bn of total equity commitments and will be dedicated to providing best-in-class facilities for life science research, manufacturing and support services catering to biotechnology incubators through to large multinational pharmaceutical companies in China.

CBC HIP will develop and invest in high-quality healthcare assets including life science research and manufacturing facilities, hospitals, medical offices and senior living accommodation in Asia-Pacific. CBC HIP has established CLSIV, a China-focused vehicle that is the first within CBC HIP’s intended suite of managed products, to empower its life science partners with sustainable and resilient, state-of-the-art facilities to meet the demands of this rapidly developing industry.

“With ageing populations and an ever-changing global environment, healthcare is an increasingly important sector for economies around the world and nowhere is this more so than in China where the advancement of healthcare and the development of the life sciences sector is a key objective for the country,” APG Asset Management head of Asia-Pacific real estate, Graeme Torre, said.

“As a long-term responsible investor on behalf of our pension fund clients, our intent is always to invest alongside the most capable and knowledgeable operating partners in key sectors for our strategy.”

The second investment is the establishment of a joint venture company with Wang On Properties Limited to engage in the acquisition of residential properties in Hong Kong for development and re-development for sale. Under the partnership, Wang On Properties and APG will work closely to acquire residential development properties across urban locations in Hong Kong with an initial total commitment of HKD 4,668bn.

The JV Company will acquire four seed projects from Wang On Properties including two residential sites in Ap Lei Chau and two residential sites in Wong Tai Sin. The four seed projects have an aggregate gross floor area of approximately 250,300 square feet.

Torre said: “We see the Greater Bay Area being an economic cornerstone for China and Hong Kong as a critical part of that initiative. We are therefore delighted to be able to partner with an operator as experienced and embedded in the local market as Wang On. Investing on behalf of our long-term pension fund clients, the strategy for our new joint venture will address several strategic themes for us such as housing affordability, urban regeneration and urbanization. The latter being a key tenet of our aspirations around climate and sustainable investing.”

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