New York-based alternative investment firm Angelo, Gordon & Co says it has reached a final closing for its third Asian real estate fund with total capital commitments of approximately $850 million, exceeding the fund’s $750 million target.
AG Asia Realty Fund III will seek to capitalise on value-add turnaround and development opportunities by focusing on Japan, South Korea, Hong Kong and China, the company said in a statement. The fund will purchase sub-performing assets which often require significant re-positioning, lease-up or in some cases development to stabilise.
The new fund comes on the heels of successful closings for Angelo, Gordon’s US-focused opportunistic and core plus funds, bringing nearly $3.5 billion of new capital to the private equity firm’s global real estate platform.
“We continue to see highly compelling real estate investment opportunities in Japan, Korea and the Greater China and believe our deep, longstanding relationships with our local operating partners position us well to generate attractive returns,” said the company’s Head of Asia Real Estate Wilson Leung.
The US firm has invested around $10 billion of equity globally in real estate deals since 1993, with $1.9 billion invested in 58 real estate deals in Asia since 2005.
The AG Asia Realty Fund III’s predecessors – the AG Asia Realty Fund II and the AG Asia Realty Fund I – were valued at US$616 million and US$526 million respectively.
Angelo, Gordon currently manages approximately $26 billion globally across credit, real estate, and private equity strategies.