Hong Kong-based alternative investment manager PAG has reached a further closing of its new pan-Asia property fund, bringing the investment vehicle up to $1.3 billion in commitments.
This latest closing of PAG Real Estate Partners Fund (PREP) comes just over two months after PAG conducted a $1 billion first close of the fund, which is targetting core-plus real estate assets in the region.
”We enjoy strong ongoing support from our investors which we are very grateful for,” said Broderick Storie, the partner at PAG responsible for managing the fund. The fund had initially targeted a US$1 billion close, but had exceeded fundraising expectations following strong support from investment partners, including Allianz and PGGM, according to a statement by PAG. The investment manager would not comment on whether there would be further closings of the fund beyond this latest milestone.
The closed-ended fund, will focus on acquiring (and presumably disposing of) core-plus assets in nine gateway cities Japan, China, Australia, South Korea and Hong Kong, according to PAG. The fund manager is focusing the vehicle on markets and sectors where it believes it has proven expertise in investment and asset management.
Fund Nearly Half-Deployed Already
Nearly 50 percent of the billion dollar fund has already been deployed, PAG says, with the vehicle having acquired a major property portfolio from GE Japan last year when that company exited the real estate business.
In the GE Japan deal, PAG picked up 26 commercial assets valued at a reported $1 billion across key commercial hubs in Japan, China and Australia, as well as in Seoul, Hong Kong and Singapore.
PAG, which was formerly known as Pacific Alliance Group, announced the closing of its $3.6 billion PAG Asia II LP fund in January, and is estimated to have US$16 billion in equity under management across its private equity, real estate and absolute return strategies.