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Alternative Market Briefing

Cube Capital: Tokyo real estate prospects will remain positive even if Japan's long-term prospects are not (1)

Tuesday, March 16, 2010

Benedicte Gravrand, Opalesque London:

Cube Capital's Asia real estate fund, launched in the midst of the credit crisis, has managed to return impressive returns by banking on office building rentals in Tokyo, REITs, Australian companies needing restructuring, and opportunities in China and Hong Kong.

Cube Asia Real Estate Securities Fund (CARE) Cube's $45m Asia Real Estate Securities Fund (CARE) returned 31.38% in '09 and -0.58% (est.) in January, annualising 24.40% since its September '08 inception. This can be compared to the TSE REIT (Japan) index which returned -0.8% in '09 and 1.4% in January, the UBS Singapore REIT index 64% and -5.6%, and the GPR Asia RE 250 LC (Asia incl Japan) index 29.5% and -4.1% in January.

CARE fund is an open-ended fund, investing in equity, debt and hybrid securities related to Asian real estate (RE). Its main markets are Japan, Singapore, Hong Kong and China, and Australia. It is managed by Nick Linnane, an Australian national and a Japanese speaker based in London who joined Cube from Citigroup Alternative Investments, and by Tom Holland, who was previously at Income Partners in Hong Kong. Cube Capital, which was founded in 2003 by ex-investment banker Francois Buclez and which manages around $1bn, has offices London and in Hong Kong.

The fund invests in real estate-related securities including ordinary equity, convertible bonds, high yield bonds, some ......................

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