GLOBAL – MGPA has achieved a second close for its Asia-Pacific real estate fund for German investors, with a €50m commitment from an insurance company taking total capital raised to €135m.
The private-equity real estate specialist, which is up for sale, is seeking to raise €500m for MGPA Asien Spezialfonds, its first German-regulated institutional vehicle targeting the region.
The fund now has four institutional investors on board for its core-plus investment strategy targeted established markets such as Japan, Australia, Hong Kong, Singapore and Malaysia.
BlackRock has been reported as the frontrunner for a potential takeover of MGPA, which is 56%-owned by investment bank Macquarie and 44% owned by its management.
MGPA's CEO Laurent Luccioni left last month to head up PIMCO's real estate investments in Europe.
The acquisition would provide BlackRock with a strong presence in Asia; MGPA has operated in the region since 1999 and employs 130 staff in seven offices there.
Last month, MGPA acquired the South Shin Otsuka building in Otsuka and the Shinjuku TX building in Shinjuku, Tokyo on behalf of the new fund. They followed the first acquisition made for the fund, the Optima Centre in Perth, Western Australia.
John Saunders, CEO for Asia at MGPA, said: "The most interesting markets at present for creating low-risk real-estate returns are in Japan, Australia and Hong Kong, driven by macroeconomic and real estate market dynamics. As always, the keys to success will be large, experienced teams on the ground and expert local knowledge."
MGPA could also provide a poential buyer a presence in Germany. The fund manager, which has six offices in Europe, is working with two German firms to help raise capital from German investors and administer the Spezialfonds, respectively. Selinus Capital is placement agent and Universal-investment provides the regulated fund structure.
