Thompson National Properties plans to launch a fund worth several hundred million dollars next year focusing on real estate assets across the United States and Asia, its chief executive Tony Thompson said.
The fund would primarily invest in the United States, although about 10 to 20 percent would buy real estate assets in Asia, including Hong Kong and mainland China, Thompson told Reuters on the sidelines of an industry forum.
Banking on an eventual boom in the use of energy-efficient designs for properties, Thompson said the fund would focus on environment-friendly redevelopment of real estate assets.
"There are tremendous opportunities as less than 1 percent of all buildings (in the US) are green, and we have to face the facts that buildings are polluting the environment more than our cars and our trucks," said Thompson.
Thompson Nationa, along with Los Angeles-based builder Shangri-La Industries, in December launched a $100 million fund focusing on commercial projects in need of renovation that can be retrofitted to boost energy efficiency.
The $100-million fund, which recently invested in a Las Vegas office building, expects returns of 20 percent over a five- to seven-year period.
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Thompson National has about 15 million square feet of property under management.
The fund that hompson National plans to launch next year would be in "multiples of $100 million, depending on how the recovery occurs", said Thompson.
Thompson said Shangri-La would be a preferred partner for the fund, which will invest in areas including Los Angeles, San Francisco, Las Vegas and Washington D.C.
"There's a big push regulatory-wise in the US to convert buildings to green," said Thompson.
"The largest tenant in the U.S. is the government. They have spoken and we are listening," he said.
U.S. President Barack Obama has pledged to modernise 75 percent of federal buildings and to improve the energy efficiency of 2 million American homes as part the government's economic stimulus package.
"Asia is the next logical place to look at for investment," said Thompson, who added that he had been in talks with several Asian property companies since February for investment in the region and hoped to seal a partnership with Asian developers within the year.
While the global recession has offered opportunities for property funds to acquire assets at better prices that the last 10-15 years, he insisted that the market remained "tough" for several property funds.
"It's still very tough out there. You need to have a track record, capital you would put in yourself, and the expertise to identify markets that offer the best opportunities," he said.
