JAPAN – Fortress Investment Group has raised JPY130bn (€1.2bn) in capital for its latest fund targeting distressed real estate debt in Japan.
The Fortress Japan Opportunity Fund II, which seeks to capitalise on opportunities arising from bank deleveraging and maturing property loans, has already made 10 investments and deployed JPY30bn of capital.
Its predecessor, which closed in June 2010 with approximately $800m (€603m) in commitments, made 23 investments and is hoping to generate a gross return of more than 34%.
According to Fortress, the new fund will seek to take advantage of "supply/demand gaps, limited credit availability, price distortions, volatility and sales of non-core or distressed real estate-related assets."
Thomas Pulley, CIO at Fortress Japan, said: "The environment remains historically attractive for disciplined, opportunistic investments in Japanese real estate-related debt and other assets.
"We anticipate that deleveraging and the disposition of non-core assets will remain at heightened levels in the coming years, and that significant opportunities will result for select managers."