Singapore-based real estate investment firm SilkRoad Property Partners has reached the final closing of its second pan-Asia value-add real estate fund at $549 million, Mingtiandi reported citing a company statement.
The fund, SilkRoad Asia Value Partners II (SAVP II), exceeded the firm’s $500-million target. The fund had been in the market since October 2018 but capital raising was extended due to the COVID-19 crisis.
According to the report, the fund has already made six investments primarily in industrial and neighbourhood retail, assets that are considered pandemic-resistant.
SAVP II is the third value-added fund managed by SilkRoad since its founding in 2012. In June 2016, the firm had achieved the final close of its oversubscribed first real estate fund, SilkRoad Asia Value Partners, at $445.5 million, exceeding the target of $350 million.
The fund was launched in August 2014 and achieved its first close in December 2014 with a total amount of $230 million. Its investors included insurance companies, endowments, pension funds, and other top-tier institutional investors from Europe, North America, and Asia.
For SAVP II, SilkRoad will continue to employ its value-add strategy, focusing on properties with favourable risk-return profiles in Singapore, Hong Kong, and Tokyo, as well as in the mainland hubs of Beijing, Shanghai, and the Greater Bay Area.
Founded in 2012 by Peter Wittendorp, Mark Khoo, Nick Kearns and Berend Poppe, SilkRoad specialises in the re-positioning and re-tenanting of properties in Singapore and the East Asian region.
The firm’s track record includes over $1.5 billion of investment in commercial property over the last decade, according to its website. It has offices in Singapore, Hong Kong, and Shanghai.
In July last year, SilkRoad Property Partners completed the acquisition of two community retail projects in Pudong, Shanghai, with a combined gross floor area of approximately 25,000 square meters on behalf of an institutional fund it manages.
These were the third and fourth investments that SilkRoad has made over the last few years in Mainland China.