Baring PE Asia’s real estate arm makes second exit in Philippines

Source: Global Gateway Development Corp.

BPE Asia Real Estate, a unit of Hong Kong-based Baring Private Equity Asia, has achieved its second successful investment exit in the Philippines reaping 24 per cent internal rate of return (IRR) in US dollar terms and net of taxes, a report said.

BPE Asia Real Estate alongside Hong Kong-based investment manager ADM Capital, have been paid off through the sale of the entire 177-hectare mixed-use park Global Gateway Logistics City (GGLC) to a Philippine developer, which valued the park for over $750 million, PERE News reported.

GGLC is a master-planned office and logistics district strategically located next to the Clark International Airport, which is situated outside greater Metro Manila.

The project, which began in 2015, is said to be one of the largest investments made by foreign investors in the Philippine real-estate sector, with the goal to transform Clark Freeport into a new office and logistics hub.

BPE Asia Real Estate and ADM Capital provided capital to develop the park’s first two office buildings after both loaned $150 million which was placed against the project’s entire assets and used to both pay off an existing senior loan.

This latest exit is the third overall for BPE Asia Real Estate’s $350 million debut fund that it raised in March 2015. Its first one in the Philippines was the AccraLaw office tower in Manila which it sold for around $75 million, or at a 31 per cent IRR (also net of tax and currency hedging) back in 2016, according to PERE.

Also Read:

Pearson to sell Wall Street English to Baring PE Asia, CITIC for $300m 

HK-based Baring PE Asia raising new $6b emerging markets fund 

Baring PE Asia-backed TELUS International acquires US firm Xavient for $250m

PH Digest: FDC, JG Summit form $16b airport JV; FNI, Vi Holding ink mining pact