<article>Private equity firm <a href="https://www.dealstreetasia.com/tag/greenoak-real-estate-lp/">GreenOak Real Estate LP</a> is seeking to raise as much as $1 billion for its third Asia-focused real estate fund, GreenOak Asia III.</article>

Private equity firm <a href="https://www.dealstreetasia.com/tag/greenoak-real-estate-lp/">GreenOak Real Estate LP</a> is seeking to raise as much as $1 billion for its third Asia-focused real estate fund, GreenOak Asia III.
About 60 per cent of the fund will be deployed across major cities in Japan, according to information from the recent finance committee meeting of its existing limited partner <a href="https://www.dealstreetasia.com/tag/texas-permanent-school-fund/">Texas Permanent School Fund</a> (PSF).
&#8220;The fund will focus on acquiring off-market, high-quality real estate primarily in Tokyo and other major markets in Japan, and to a lesser extent, Hong Kong and Singapore,&#8221; a StepStone Real Estate executive told the Texas PSF finance committee last week. StepStone is the endowment fund&#8217;s real estate investment consultant.
GreenOak Asia III will target to produce annualised returns of 15-18 per cent for its LPs during its fund life, the executive added.
During the meeting, StepStone tabled a recommendation for Texas PSF to make an investment commitment of up to $75 million to GreenOak&#8217;s third Asia real estate fund. The allocation has been approved.
Founded by former Morgan Stanley Real Estate executives Fred Schmidt, Sonny Kalsi, and John Carrafiell in 2010, GreenOak&#8217;s property strategy largely focuses on office assets. It typically allocates 55 per cent of its corpus to opportunities in the office space, followed by retail (20 per cent), multi-family real estate (15 per cent) and hospitality (10 per cent).
Its latest fund will focus on assets in major Japanese cities, including Tokyo, Osaka, Nagoya, Fukuoka, Sapporo and Okinawa, StepStone revealed during the Texas PSF meeting.
Texas PSF is an existing investor in GreenOak&#8217;s Asian funds, having committed $50 million to GreenOak Asia II in 2015. Fund II was closed in the same year at $655 million, almost triple the size of the firm&#8217;s debut Asia fund, GreenOak Japan, which was closed in 2012 at $260 million.
This February, PSF had also committed <a href="https://www.dealstreetasia.com/stories/kkr-asia-real-estate-120289/">$75 million to KKR &amp; Co.&#8217;s debut Asia-focused real state fund</a>, which is <a href="https://www.reuters.com/article/us-kkr-asia-fundraising-exclusive/exclusive-kkr-raising-first-asia-real-estate-fund-targeting-1-5-billion-sources-idUSKCN1R20O1">seeking to raise up to $1.5 billion</a>. It also made a commitment of <a href="https://www.dealstreetasia.com/stories/pag-asia-special-situations-120436/">$75 million to Hong Kong-based PAG&#8217;s third special situations fund</a> in the same month.
<h3>Texas PSF to deploy $850m in real estate allocations in 2019</h3>
At its meeting last week, the Texas PSF finance committee approved a new real estate tactical investment plan, which aims to deploy $850 million to the asset class in 2019.
The committee also approved a change in governance for PSF&#8217;s $2.8 billion real estate portfolio, allowing the fund&#8217;s internal staff to commit up to $175 million per commitment to core real estate strategies and up to $125 million per commitment to non-core funds without the approval of the finance committee and the State Board of Education.
PSF has approved nine commitments to core real estate strategies in 2019 alone, with only one of them in excess of $175 million. In terms of non-core real strategies, it has done five transactions this year, with each ticket size of about $100 million.
The $33.2 billion endowment fund&#8217;s consultant StepStone Real Estate also must approve investments recommended by staff. According to the committee, its staff already had investment discretion for commitments to real estate co-investments and purchases of real estate stakes on the secondary market.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/gaw-capital-tokyo-office-tower-129096/">Gaw Capital acquires first office tower in Tokyo, likely for $750-850m</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/kkr-asia-real-estate-120289/">KKR bags up to $75m in commitments from Texas Permanent for first Asia realty fund</a>

Private equity firm GreenOak Real Estate LP is seeking to raise as much as $1 billion for its third Asia-focused real estate fund, GreenOak Asia III.

GreenOak Asia seeks to raise up to $1b for real estate fund

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

GreenOak Asia seeks to raise up to $1b for real estate fund

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief