Chelsfield closes debut Asia value-add fund at $362.5m

Singapore. Photo by Andrew Kow on Unsplash

Chelsfield Asia, a subsidiary of London-headquartered real estate investment manager Chelsfield, has raised $362.5 million for its first pan-Asia value-add fund, Chelsfield Asia Fund 1, according to an announcement on Friday. 

Chelsfield additionally secured a co-investment commitment of $150 million to add to previously bagged $366 million in such commitments, bringing the total equity amount raised to $878.5 million.

“The global recession provides a once-in-a-generation opportunity for investing, and with some cities in Asia beginning to emerge from the crisis, we are well positioned to take advantage of this cycle,” said Chelsfield Asia group vice chairman and CEO Nick Loup. 

Investors in the Asia fund include a sovereign wealth fund, a US-based pension fund, a Middle East-based global investor, a corporate investor from Asia, a Hong Kong-based family office, and a global fund of funds, Chelsfield said.

The development was first reported by industry publication PERE on Thursday.

Launched in 2017, Chelsfield Asia Fund 1 targets real estate assets with substantial value-add potential via operational enhancements and capital improvements in Hong Kong, Shanghai, Singapore and Tokyo.

Chelsfield launched the vehicle with a $400 million target and held the first close at $121.5 million in July 2017. It is understood that the real estate investor started its second round of fundraising in November 2019 after fully deploying capital raised for its first close.

In November last year, Chelsfield made its fifth investment from its Asia value-add fund to acquire a 50 per cent stake in four office buildings located in Lifehub@Daning in Shanghai through a 50:50 joint venture with Hong Kong-based investment management firm Pamfleet.

Other investments by the Asia fund include a joint purchase with Singapore-based ARA Asset Management of commercial tower Manulife Centre in Singapore for S$555.5 million ($390.9 million) in January 2019.

Chelsfield Asia focuses on assets in mixed-use, office, residential and retail sectors. It typically acquires underperforming assets in prime locations or gentrifying areas with future infrastructure improvements and regeneration plans, according to its website. As of March 2020, it manages $1.1 billion of assets.

Established in 1986, Chelsfield’s assets under management stood at $5.5 billion as of December 31, 2019. The asset manager launched its Asia arm after acquiring the Dymon Asia Real Estate business in 2016.

Editor’s note: This story was updated on May 29 after Chelsfield Asia issued a press statement confirming its fund close.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.