Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

KKR $6 Billion Fund May Lead to More China Real Estate Acquisitions

2013/07/14 by Michael Cole Leave a Comment

KKR Joseph Bae

KKR’s Joseph Bae

A record $6 billion Asia fund announced by U.S. private equity firm KKR Co on Wednesday will be deployed at a time when an economic slowdown and emerging market sell-off has knocked the overall value of Asia Pacific corporations to historic lows.

Private equity giant KKR has announced a final close of $6 billion on its second pan-Asian fund, and this new fund could have a profound impact on real estate investments in China.

According to sources in the banking industry, KKR has been actively scouting real estate investments in China, and may be planning to put capital from either its global real estate fund, or its second Asia buyouts fund into what is already a hot market for en bloc real estate investments.

Already in the past year there have been several notable acquisitions of Chinese real estate assets by regional and global private equity funds, including BlackRock acquiring MGPA in May, Hong Kong-based Gaw Capital buying the Cross Tower in Shanghai during May, the Carlyle Group buying Central Plaza in Shanghai in April, and Blackstone buying the Huamin Imperial building in Shanghai in October 2012.

The new KKR fund is 50% larger than its 2007 predecessor, and is the largest regional private equity pool ever accumulated. For its part, Blackstone also plans more investments in Asian real estate, and is currently raising a $4 billion Asian real estate fund of its own.

Commenting on the the closing of the new fund, Joseph Bae, managing partner of KKR Asia, said the successful fundraise is testament to the firm’s strong track record in the region, with more than $5.5 billion invested since it set up shop here in 2005. Most of the capital has come from the $4 billion Asian Fund I but the firm also raised a $1 billion China growth fund in 2010.

Of KKR’s current portfolio, China and South Korea account for 25% each, followed by Australia on 15% and India on 14%. Japan, Vietnam and Singapore are in the single digits.

KKR was founded in 1976 by two cousins, Henry Kravis and George Roberts, and Jerry Kohlberg, after they worked together at Bear Stearns. Kohlberg left the partnership early on, but the firm went on to pioneer the the leveraged buyout business of buying a company on borrowed money, restructuring it in certain cases, and selling it later for more than the cash invested.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: BlackRock, Blackstone, Gaw Capital Partners, Henry Kravis, KKR, Kohlberg Kravis Roberts, real estate fund

Logistics forum 2022 Jumbo

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

MTD TV Interview with Jeffrey Perlman of Warburg Pincus Now Online

Allianz, SC Capital, BW and JLL Talk Asia’s New Logistics Real Estate Reality: MTD TV

More MTD TV Videos

Latest Stories

Sinar Mas Land chairman Muktar Widjaja

Indonesia’s Sinar Mas Buying London Building From Landsec for $238M

George Hongchoy, Executive Director & CEO, Link REIT

Link REIT to Acquire Three Yangtze River Delta Sheds for $139M

Tham Kuo Wei Mapletree

Mapletree Industrial Trust Eyes Full Ownership of $1.8B American Data Centre Portfolio 

Sponsored Features

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

Vietnam’s BW Acquires First Assets in Long An Province as Growth Continues Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.