APG Asset Management is strategically pivoting toward core and core-plus real estate investments in Asia Pacific developed markets, as announced by Brian Hung, head of real estate Asia Pacific. This shift aligns with the firm's broader objective to become exclusive manager for Dutch pension ABP by 2030, managing its €43.4 billion portfolio that delivered a 5.5% return in 2024.

The Dutch investor is moving away from shorter-horizon development projects toward longer-term investments of 7-10 years. APG is increasing allocations to open-ended vehicles, recently anchoring Hongkong Land's Singapore Central Private Real Estate Fund with S$8 billion initial capital. These vehicles provide greater liquidity as the firm scales its regional exposure.

Despite the strategic shift, selective development remains part of APG's approach when existing high-quality assets are unavailable. The region remains under-allocated for APG, with Hung confirming 2026 will see increased activity across Asia Pacific. The firm's two decades of regional experience positions it to shape emerging institutional real estate products in the maturing market.