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MGPA announces first close on Asia real estate fund

  • Alvina Yuen
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MGPA, a private equity real estate investment firm, has held a first close on a EUR500 million ($639 million) Asia property fund targeting German investors. The vehicle has so far received EUR85 million ($109 million) from three German institutions.

The fund - MGPA Asien Spezialfonds - is regulated under German investment laws and is primarily designed for institutional investors in German-speaking countries seeking exposure to Asian real estate markets. It will focus on established markets such as Japan, Australia, Hong Kong, Singapore and Malaysia.

"The most interesting markets at present for creating low risk real estate returns are in Japan, Australia and Hong Kong, driven by macroeconomic and real estate market dynamics," said CEO John Saunders in a statement. "As always, the keys to success will be large, experienced teams on the ground and expert local knowledge."

The fund will source revenue from rental and management income, especially in the office and retail sectors.

MGPA has operated in Asia since 1999 and has 13 offices across Asia-Pacific and Europe. In June 2008, the firm closed its third Asia fund at $3.9 billion, nearly $3 billion more than its predecessor, which was launched in 2005. The vehicle invests in offices, retail, residential, logistics and hotel properties.

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