Hong Kong’s PAG Real Estate closes sixth oppo fund at $1.2b

Hong Kong-based alternative investments firm PAG’s real estate arm PAG Real Estate had raised $1.2 billion in equity from institutional investors for its sixth (Fund VI) real estate opportunity fund.

According to a report from PERE last week, the real estate firm that had targeted to raise $1.5 billion and raised the amount in just one closing.Moreover, a $300 million has been “soft circled” and is expected to close officially in the first quarter of 2017.

The fund that was launched in January last year, has a hard cap or permitted fundraising total at $1.7 billion.

Backed by PAG which has a growing presence in Asia, this fund’s closing follows a $1.3 billion final closing for the firm’s first core vehicle in June which had surpassed the $1 billion original target that the real estate investment firm had set.

The Fund VI was launched at a time when its predecessor fund, Secured Capital Real Estate Partners (SCREP) V was almost 90 per cent deployed and the current fund is also on way to be deployed.

According to the report, about $100 million from Fund VI has already been invested in Japanese distressed situations, a major strategy for the firm.

It is expected that while a larger part of the fund will be invested in Japanese real estate deals, over 30 per cent may be allocated to other Asian property markets with China, Korea and Australia.

PAG Real Estate has invested over $21 billion across the region and takes a flexible approach to investing. It is part of one of the largest alternative investment management firms in Asia which manages funds in private equity, real estate and absolute return strategies with $16 billion in funds under management.

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