Sinagpore-based private equity firm SC Capital has picked up around 50 per cent stake in the $146 million Harbour Town portfolio, located at the Australian city Melbourne’s Dockyards, marking its second deal in that country within months, DEALSTREETASIA has learnt.
The private equity firm will join hands with Ashe Morgan to redevelop the assets, which include a Medibank Icehouse as well as a Town Shopping Centre, among others.
The PE firm will fund the deal from its recently closed $850 million fund. In December. The institutional real estate private equity investment firm, had closed its fourth fund, after raising capital from a diverse array of institutional investors from across the globe. Limited partners in RECAP IV comprise 34 institutional investors from North America, Europe, Asia and Australia.
Also Read: SC Capital raises $850m new realty fund
Prior to this, RECAP IV had completed two investments as of December 31, 2014, including a retail asset in Melbourne, Australia, and an interest in prime beachfront land in the Phang Nga Province of Thailand.
DEALSTREETASIA had reported earlier that SC Capital Partners had bought Rydges Darwin Airport Hotel and Resort in Australia from the Denwol Group for around $85 million, from its RECAP) IV Fund. This deal was completed last month.
Now, SC Capital has four investments in Australia, and the combined value of these deals is around $500 million. This is largely in line with the ongoing trend over the last couple of years, which real estate investment trusts (REITs), hospitality chains and PE funds from Asia, looking at Australia expansion by securing local assets in that continent.
Prior to its latest fund, SC Capital had closed RECAP III at $530 million despite being oversubscribed by more than $100 million, against its $500 million hard cap target. Earlier, the company had had raised $221 million as part of RECAP I in 2005, and $190 million in equity as part of RECAP II in 2010.
Formed in 2004, SC Capital Partners is a 100 per cent employee-owned, and invests in multiple property types, including office, retail, hospitality and mixed-use assets, across China, Hong Kong, Japan, Singapore, South Korea, Australia, Thailand and Myanmar.
Since inception, SC Capital Partners has invested more than $870 million of equity and just under $1.8 billion of total capital across 39 deals across its four funds.