Why fund management makes sense for Wing Tai now

IN 2007, Wing Tai Holdings led a multinational consortium that included Germany's SEB Immobilien-Investment, Forum Partners of the US, and Israel's Eilam Group to create a US$1 billion real estate development and investment platform in China. But that venture came to nought with no investments made, possibly botched by an earthquake in the country and the Global Financial Crisis.

Nine years on, Wing Tai is making another attempt at fund management, this time setting up its own fund management unit WT Fund Management Pte Ltd, helmed by investment veteran Chua Choy Soon who has nearly 20 years of experience with SEB Asset Management and GIC. It said last month that the fund will co-invest in Asia Pacific with institutional investors.

While the group remains reticent about details of the fund and its targeted asset under management (AUM), one would expect its AUM to run into billions of dollars spanning various assets, including commercial real estate.