Singapore-based SC Capital Partners is launching its fifth – and largest – opportunistic real estate fund early next year, aiming to raise $1bn (€891m) to invest across the Asia-Pacific region.
Real Estate Asia Capital Partners (RECAP) V is expected to attract existing investors predominantly from the US, Europe, the UK and possibly Australia.
SC Capital has attracted investors from US public pension funds for its RECAP III and IV vehicles.
It also counts the UK’s Pension Protection Fund as one of its investors, according to public sources.
SC Capital said it would target developed and emerging markets, including Thailand, Vietnam and Indonesia, as well as gross returns of 18% or more.
Returns from its four previous opportunistic funds ranged from 22% to 26%.
Founder and managing director Suchad Chiaranussati told IPE Real Estate SC Capital was also raising capital for its first core fund, which was launched in August 2015 and had a first close in January 2016.
“It has a $400m target but already has soft-circled commitments for up to $500m,” he said.
The core-plus fund is open-ended with a three-year initial lock-up, and subsequent yearly liquidity.
SC Capital is competing with a number of other providers of Asia core funds now raising capital.
“Why do we raise a core fund at this point in time?” Chiaranussati asked. “There will never be a perfect time to raise capital.
“In the next two or three years, as we deploy the $400m-500m, there will be situations where stable assets will become available at good valuations.”
He said the world was uncertain and that interest rates might spring back to a level that would disrupt the market.
“We should have capital to invest when the disruption happens,” he said.
SC Capital’s core fund is seeking to capitalise on Asia’s resilient education sector.
Its assets include a 230-bed student-accommodation facility in Sydney, master-leased to the University of NSW, and a retail property in Hong Kong’s Ngau Tau Kok district, in Kowloon, leased to Hong Kong tuition companies.
Its next acquisition in Seoul – now under due diligence – is also leased to education providers.