GreenOak Real Estate, a real estate-focussed private equity firm, has closed a $650-million Japan-oriented fund. The fund has a two-year investment period, with a total term of seven years.
Founded in 2010 by three former heads of Morgan Stanley Real Estate Investing – Sonny Kalsi, John Carrafiell and Fred Schmidt – the firm maintains a portfolio of European, Japanese and US properties, primarily commercial office buildings.
According to its website, it has offices in New York, Los Angeles, London, Seoul, Madrid, Munich and Tokyo.
As of Septembre 2015, it claims to have approximately $5.6 billion of assets under management (AUM) globally and has raised $3.5 billion of equity to invest in targeted strategies and assets.
In a development reported by PERE, Greenoak was successful in reaching the hard cap for GreenOak Asia Fund II.
According to PERE, the fund was started as a higher-yielding vehicle that was launched with an initial $500 million target. Most investors who committed capital to their first $260 million fund in 2013 have re-upped into the new fund.
According to PERE, most of the first fund’s capital – including new investors and 15 repeat investors – has been invested by Asian and US institutions.
GreenOak Real Estate’s Asia strategy has been focusing on investing in Japan. The $260 million maiden fund has been fully deployed and the firm is in the process of liquidating its investments.
It will follow the same investment strategy as the first fund, targeting office complexes in within Tokyo and Osaka. However about 20 per cent of the capital is slated for deployment in assets outside of Japan.
It closed its first European vehicle – the Continental European Private Equity Real Estate Fund – on a hard cap of €250 million in November 2015.
It was reported that the second fund has already deployed around 15 per cent of its capital. One of the assets newly added to its portfolio is a Tokyo office building purchased from Mitsubishi Real Estate, with net IRRs in the mid to high teens being targeted from the investments.