Ferrell plans new Asian property fund

By Saeed Azhar

SINGAPORE (Reuters) - Ferrell Asset Management plans to launch a 500 million euro (US$673 million) property fund to lure European and Middle Eastern investors into the fast rising luxury housing and commercial markets in Singapore.

David Lee, managing director and founder of Singapore-based Ferrell, said on Thursday he was talking to investors about the new fund, which will likely double the firm's assets under management.

"We are looking at 500 million euro region with a key few institutions. I think we have European institutions and a couple from the Middle East," Lee said at the Reuters Hedge Funds and Private Equity Summit in Singapore.

"We hope to do it as soon as possible because timing is important."

Ferrell currently manages six funds worth $500 million for its clients. Of that amount, 80 percent is invested in residential and commercial property projects in Singapore.

The new fund would be the latest of several being raised this year for Asian property, including two $1 billion funds by the real estate arm of ING Groep NV (ING.AS: Quote, Profile, Research, Stock Buzz), and a $1.29 billion fund from Citigroup (C.N: Quote, Profile, Research, Stock Buzz).

Most are targeting Japan, which has around $1.2 trillion worth of investment-grade buildings -- about two thirds of Asia's total, as well as fast urbanizing India and China.

But Lee said Ferrell's fund would invest in commercial and residential properties in Singapore and may branch out in the region to markets such as Hong Kong, Malaysia and China.  Continued...