Realty PE firm Phoenix Property closes sixth Asia fund at $1.15b

Hong Kong. Photo by SHUJA ZED on Unsplash

Hong Kong-based real estate private equity firm Phoenix Property Investors has hit the final close of its sixth Asia realty fund after securing total commitments of $1.15 billion.

The fund, called the Phoenix Asia Real Estate Investments VI, was launched early last year with an initial target of $900 million.

The fund was closed in September, placement agent Monument Group said in a statement. It bagged commitments from endowments and foundations, pension plans and sovereign wealth funds across Asia, North America, Europe and the Middle East.

“There was substantial investor interest in Fund VI, owing to the team’s many years of experience as a value-oriented real estate investor. With the close of Fund VI, Phoenix is well positioned to continue its successful Pan-Asian property investment program,” said Momentum Group managing director Robert Mast.

Based in Hong Kong, Phoenix is independently managed and owned by its partners. The firm invests in real estate opportunities in the residential, retail, office and commercial sectors in 15 first-tier cities across Asia.

Phoenix has already started investing from the latest fund, committing to 17 investments, totalling approximately $424 million.

At $1.15 billion, its sixth fund is significantly larger than its previous funds. The firm’s fifth fund closed at $750 million in late 2013 while its fourth fund had raised $460 million.

As of 30 September 2018, Phoenix had managed over $10.5 billion of gross real estate assets, comprising $6.8 billion of current assets, according to its website.

Phoenix is one of several fund managers looking to tap into real estate opportunities in Asia. According to a Preqin report, fund managers raised $18.6 billion across 26 Asia-focused real estate funds in 2018, setting a 10-year record.

In July, buyout major KKR announced holding an initial close for its first Asia real estate fund. The firm did not disclose the amount raised in the first close but is targeting to raise about $1.5 billion for the fund. US-based private equity firm Lone Star Funds is also raising a $4.5-billion sixth real estate fund with an Asia mandate. Blackstone Group, meanwhile, raised the region’s biggest real estate fund last year at $7.1 billion.

The latest to jump on the bandwagon this year is UK-based PE firm Actis, which, according to a filing earlier this month, is set to raise its second Asia-focused real estate fund, having closed a $750 million first vehicle in July 2018.

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.