$100 Million Asian Property


$100 million of Oregon’s state pension was won by Angelo, Gordon & Co., a company that lies in charge of $23 billion of various investments. The pledge was incurred for an Asian property fund.

$600 million was used from The Oregon Investment Council’s $65 billion holding of state retirement accounts, with the money going to China, Japan and South Korea.

The move was done because emerging markets are expected to outperform the US in 20 years, as they begin to progress faster than world growth.

The Public Employees Retirement Fund, Oregon’s largest holding will furnish the money for the investment.

Asia is no alien investment-ground for the New York-based Angelo, Gordon, who have been sinking money into the Asian markets since 2005, and who have garnered a $41.7 million profit from a development deal with China in 2007.

Fundraising

Hong Kong’s previous reign as the world’s best housing market was usurped by China, with Chinese property prices increasing 11% in June last year, and 12% in May.

Higher mortgage rates and more scrupulous loan procedures are some of the measures taken by the government in order to dampen the market.

Angelo, Gordon’s savvy approach to real estate investments is expected to pay off as early as next month.

U.S. Assets

Angelo, Gordon’s golden touch has bared fruit in the US as well, as the firm has raised $2 billion in the US market from 2006-07.

As China represents a much better market for real estate than the US, it made sense to delve into the new territory. Both Chinese housing prices and disposable income have been increasing dramatically, yet the average income has grown 13% compared to the housing increase of 5.5%, rendering housing more affordable, and a 50% profit margin is also a great lure for new investors.