RRJ to launch $1b real estate fund - report

According to Reuters, the new fund - which is initially seeking to raise $500 million - will focus on residential, retail, hospitality and care homes for the elderly, with a first close anticipated by the first quarter of next year. The fund will target a 25-30% return on investments.

"We are very bullish on China's economy and expect stable, good growth. Depending on demand, we may expand the fund to up to $1 billion," said Ong.

RRJ is one of a clutch of private equity firms looking to bolster their exposure to Chinese real estate. The Blackstone Group, The Carlyle Group, TPG Capital and RRJ have all been engaged in China real estate investments in recent months.

Last month, RRJ invested $50 million in Hong Kong-listed China property developer CIFI Holdings Group Co and Blackstone recently agreed to pay around $400 million to buy a stake in Chinese developer SCP.

Carlyle, meanwhile, said it would invest around $200 million with US investment management firm Townsend Group to buy and build 17 warehouses, and TPG committed $108.6 million in Xinyuan Real Estate, a US-listed Chinese property developer.

Furthermore, Blackstone is raising an Asia real estate fund and has already attracted $1.5 billion in commitments, with a final target of $4 billion. Baring Private Equity Asia is also in the market with a property vehicle, while PAG's Japan-based real estate investment arm recently closed its fifth fund at $1.5 billion.

RRJ Capital reached a final close of $3.5 billion for its second private equity fund in March, short of its $5 billion target.

 

 

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• Topics
• Greater China
• Fundraising
• Real estate
• Real estate
• Real estate
• China
• RRJ Capital
• Fundraising