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.

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