Case | HBS Case Collection | January 1999 (Revised August 1999)

Asia Property Limited

by William J. Poorvu and Daniel J. Rudd

Abstract

On October 23, 1998, Bud Lake leafed through his files on property markets in Asia. Lake was responsible for real-estate investments at an aggressive and eclectic investment fund with total assets of $1.5 billion--up from $400 million at its start in 1994. As the fund grew, Lake found himself scrambling to deploy his allotted 25% into real estate. For several months, he had been finding it difficult to buy U.S. properties. Recently, Lake had invested $30 million in a European "vulture fund," his first foray outside of the U.S. property market. Now Lake was taking a hard look at Asia, just as the lure of collapsing property values and $600 to $800 billion of troubled real-estate loans in the region was leading to unprecedented interest by U.S. real-estate firms. In a moment, he would hear a presentation from Jack Wong and Jason Biller, young entrepreneurs who were looking for a $25 million investment to get their new fund, Asia Property Ltd., off the ground. In addition, Lake has explored other options, such as buying the stock of a publicly traded Asian real-estate company.

Keywords: Private Ownership; Entrepreneurship; Investment Funds; Globalized Markets and Industries; Public Ownership; Real Estate Industry; Asia; United States; Europe;

Citation:

Poorvu, William J., and Daniel J. Rudd. "Asia Property Limited." Harvard Business School Case 899-145, January 1999. (Revised August 1999.)