PAG real estate arm raises $1.5b Asia fund

The fund launched during the fourth quarter of 2011 and is double the size of its predecessor, which reached a final close of $525 million in 2009.

This latest vehicle will focus primarily on distressed real estate and debt opportunities in Japan, but it will also leverage its pan-Asian network to source investments elsewhere in the region. According to a release, the fund has already closed 11 deals - acting with co-investors - worth a cumulative $1.8 billion. It currently has outstanding deals in Japan, Korea and Australia.

The fund's LPs include a range of institutional investors from the US, Asia and Europe, a number of which are said to have a re-upped from Fund IV.

"We believe that the Japanese debt market provides some of the best risk adjusted returns globally as a result of a large opportunity and a limited availability of capital. We have great conviction in this strategy," said J-P Toppino, president and chief investment officer of Secured Capital and managing partner of PAG Real Estate.

Secured Capital first began operating in 1997 and later merged with PAG in 2011. Its two core lines of business include asset management relating to property investment and the acquisition and servicing of loans secured by real estate. It has $9 billion of real estate assets under management.

This is the second Asian real estate vehicle to close a matter of weeks, last month Hong Kong-based Gaw Capital reached a final close on its fourth China real estate fund at just over $1 billion - the largest vehicle the firm has ever raised.

Meanwhile, The Blackstone Group has already managed to attract $1.5 billion of capital commitments for its first Asia real estate fund, targeting $4 billion.

 

 

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• Topics
• Real estate
• North Asia
• Fundraising
• PAG
• Secured Capital Japan Co.
• Real estate
• Fundraising