SC Capital Partners acquires real estate NPL portfolio in Japan

Japan by Manuel Consentino on Unsplash

Singapore-headquartered SC Capital Partners has acquired a portfolio of real estate non-performing loans (NPLs) in Japan.

The acquisition was conducted through SC Capital’s latest closed-end opportunistic fund – Real Estate Capital Asia Partners V (RECAP V).

The portfolio, which was acquired from a regional bank, is collateralised mainly by residential assets, largely located in and around Osaka, the firm said in a statement.

SC Capital Partners added that the new acquisition will help RECAP V take advantage of the strong residential market in Japan that has experienced large capital inflows from both domestic and foreign investors.

“We’ve been seeing an increasing number of opportunities in the real estate debt segment across the region, especially due to the volatility brought by COVID,” said Suchad Chiaranussati, founder and chairman of SC Capital Partners. He added that the firm’s investments will include various forms of credit, such as non-performing loans and mezzanine loans.

SC Capital Partners said that prior to the NPL transaction in Japan, RECAP V had executed two other credit deals in the Asia-Pacific.

RECAP V was launched in 2017 and closed in 2019 at $850 million. The vehicle has to date deployed most of its capital in Australia, China, Japan and South Korea, executing 23 transactions.

The fund joins a spate of private equity real estate investors who want to tap the Japanese realty market, such as GLP, which has raised $2.75 billion for its latest Japan-focused fund with a target to close at $3.6 billion. Other managers that have acquired assets in Japan or are looking at ramping up investments in the country include Savills Investment Management, PAG, and M&G Real Estate Asia, the real estate fund management arm of UK-based M&G Investments.

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. 
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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.