What are the main concerns limited partners have about the structure of management fees for Asia Pacific real estate vehicles? What qualifies as “fair” management fees in Asian markets where reliable, meaningful performance benchmarks are not yet available?

It is very difficult to take a formulaic approach to figuring fair fee arrangements in the Asia Pacific region given there is no existing, widely-adopted fee structure that can be applied to investments across risk profiles and across markets and sectors, says Peter Lee, fund manager for direct property in Asia for Henderson Global Investors.

“In my view, ‘fair’ is a subjective and relative concept, which depends on investors’ perceived value of the investment opportunity vis-à-vis the risks, combined with the GPs’ perceived ability to realise such value,” Lee says.

Most investors have their own d