09 August 2017
Reporter: Theo Andrew

SC Capital targets $1 billion APAC real estate fund

SC Capital Partners (SCCP) has launched Real Estate Capital Asia Partners V (RECAP V), a real estate fund targeting $1 billion.

The fund expects to close in October, once the $850 million RECAP IIII, currently 75 percent committed, has been fully disposed.

RECAP V will target opportunistic real estate across the Asia Pacific, similar to its previous four RECAP funds, including, Japan, China, South Korea, Thailand, Singapore, Indonesia, Vietnam, Australia and New Zealand.

The Singapore-based firm will raise the funds through its private equity structures.

Despite a global squeeze on real estate investment opportunities, SCCP believes there will be enough opportunities for the fund, which is targeting an initial rate of return of 20 percent.

“There is still very robust pipeline, and SCCP are known for taking on odd geographies in Southeast Asia,” a source said. “There is obviously distress everywhere, whether its mis-managed properties or a joint venture gone wrong, that's where SCCP finds most of its opportunities.”

The group expects to close its first deal in Vietnam in the coming months.

According to Preqin, 79 percent of institutional investors in Asia targeted an opportunistic strategy in Q1 2017, with the high yields making it the most attractive policy.

SC Capital Partners has raised just under $1.8 billion from institutional investors across its previous four funds.

In July, SCCP closed its open-ended real estate core plus fund, SC Core Fund, with total equity commitments of $451.5 million.

The fund will run an investment period of approximately three years and will target a diversified portfolio in gateway cities in the Asia Pacific, aiming for a gross total return of 10 to 12 percent.

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
London pension fund strengthens board
17 August 2017 | London | Reporter: Theo Andrew
The London Pension Fund Authority (LPFA) has appointed Nigel Topping and Barbara Weber to its trustee board, effective immediately
Greystar appoints Jeff Manno to lead Growth Fund
17 August 2017 | Charleston | Reporter: Theo Andrew
Reporting to Chris MacNaughton, Greystar’s head of portfolio management platform, Manno will relocate from London to Charleston, South Carolina
LaSalle shoots for $1 billion Asian real estate fund
17 August 2017 | Chicago | Reporter: Theo Andrew
In its fifth and latest close, LAO V secured $335 million of commitments, meaning the fund is well in line to exceed its initial target of $750 million
Schroders secures self-storage portfolio for £44 million
16 August 2017 | London | Reporter: Theo Andrew
It is the institutional investor’s first foray into self-storage sector, which it sees as a major growth opportunity within the alternatives sector down to changing demographic trends
BlackRock enters Australian renewable energy sector
16 August 2017 | Queensland | Reporter: Theo Andrew
The global investment manager secured the long-term syndicated debt facility through the Clean Energy Finance Corporation, the Commonwealth Bank of Australia and Natixis
Foundation appoints new global head of transactions
15 August 2017 | Zurich | Reporter: Jenna Lomax
Feix will be based in Zurich and replaces Ulrich Kaluscha, who held the post on an interim basis
Five Point buys OC office campus for $443 million
15 August 2017 | California | Reporter: Theo Andrew
Five Point Holdings has acquired a 73-acre corporate campus in Irvine, California, on behalf of its new venture, Five Point Office Venture Holdings I, for $443 million