This real estate fund would rather invest in the Philippines than China

Bucking the trend of many property funds that have their sights firmly set on China, BPE Asia Real Estate is looking for gold elsewhere.

“There are still some uncertainties,” said Mark Fogle, managing director and head of real estate for BPE Asia, citing a glut and the economic downturn. “It may not be the right time to buy assets in China.”

Property consultants Colliers International estimates vacancies of Grade A offices buildings will this year run into double digits in tier 1 Chinese cities of Shanghai, Shenzhen and Guangzhou due to oversupply. Similarly high vacancy rates are also expected in Chengdu.

READ MORE: Little optimism about China’s property destocking prospects

Fogle said the company has not made any investment in China as it has not been able to find assets that can yield attractive returns in the past two years.

BPE is an independent alternative investment adviser that operates a pan-Asian investment programme based out of Hong Kong. It has over 120 staff across seven offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta and Tokyo.

Its wariness over China apart, BPE sees good prospect in other countries.

“We have confidence in the Philippines. The country is changing dramatically and the middle class is growing rapidly,” said Fogle.