Warburg Pincus closes inaugural Asia real estate fund at $2.8b

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US private equity powerhouse Warburg Pincus has closed its inaugural Asia-focused real estate fund at $2.8 billion, the firm said on Wednesday.

The Warburg Pincus Asia Real Estate Fund is the second-largest fund dedicated to the sector in Asia, according to data provider Preqin. Blackstone Group raised $7.1 billion in the region’s largest real estate fund in 2018, the data showed.

The fund will focus on investing in asset-level, technology-enabled or technology-driven real estate opportunities in Asia, Warburg said in a news release.

“We are currently witnessing a once-in-a-generation change in real estate driven by technology, where leading global investors are seeking to rebalance their portfolios by investing more capital into new economy real estate where they have been meaningfully underweight,” said Jeffrey Perlman, the firm’s managing director and head of Asia-Pacific real estate and Southeast Asia.

The fund will focus on areas such as logistics, data centres, IT offices, life science parks, and multifamily real estate, according to the release.

It will also invest in the repositioning of underperforming or obsolete real estate assets and those in special situations, the firm said.

Warburg’s real estate fundraising comes as an increasing number of global private equity managers seek to diversify in Asia.

U.S.-based KKR & Co in January closed its first real estate fund at $1.7 billion.

Blackstone is aiming to raise $9 billion in its third and largest Asia real estate fund, the firm’s chief operating officer said in October.

Fund managers have raised a total of $17.1 billion in 37 real estate funds for Asia so far this year, Preqin data showed.

Warburg’s inaugural Asia real estate fund exceeded its initial target of $1.5 billion and hard cap of $2.5 billion because of strong demand, the firm said. More than 60% of the capital raised was from leading institutional investors in Asia, it said.

The firm has been in Asia real estate sector for more than 15 years through its main global funds and China- and Southeast Asia-focused companion funds, with over $6.5 billion invested in more than 40 real estate ventures.

Reuters

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.