Singapore’s SC Capital Hits $900M Final Closing of Sixth APAC Opportunistic Fund

SC Capital Partners on Wednesday announced the $900 million final closing of the private equity firm’s sixth Asia Pacific opportunistic real estate fund.

Real Estate Capital Asia Partners VI targets growth-oriented investments across APAC’s developed markets and has already committed more than 70 percent of total raised equity, with 44 percent allocated to Japan, SC Capital said in a release.

The Singapore-based firm, which is 40 percent owned by Temasek-controlled CapitaLand Investment, launched RECAP VI in 2022 with a target size of $1 billion. Founder and chairman Suchad Chiaranussati said SC Capital remains optimistic about APAC real estate despite ongoing challenges in global capital markets.

“We continue to identify compelling opportunities, particularly in Japan’s hospitality sector, the data centre market, and the industrial and logistics sectors, all of which are underpinned by strong long-term fundamentals,” Suchad said.

Japan Deployments

RECAP VI received support from sovereign wealth funds, corporations and institutional investors, SC Capital said without identifying any specific limited partners.

The fund’s investments have included the $900 million acquisition of 27 Japanese hotels as part of a consortium with Goldman Sachs Asset Management and the Abu Dhabi Investment Authority. SC Capital subsidiary Japan Hotel REIT Advisors manages the 7,124-room portfolio, which spans major tourist destinations across the country.

The fund is also developing a 50-megawatt data centre campus in Osaka and a hyperscale facility in South Korea’s Bucheon in collaboration with SC Zeus Data Centers, an in-house operating platform of SC Capital.

“The successful close of RECAP VI underscores our ability to leverage our in-house specialist operating platforms across hospitality, data centres, as well as industrial and logistics,” Suchad said. “This approach enables us to provide robust development solutions in key sectors, enhance operational efficiencies and generate long-term value for our investors.”

CapitaLand Boost

SC Capital oversees $8.3 billion in assets under management, with 57 percent allocated to Japan, its largest market, followed by Australia at 10 percent.

CapitaLand Investment closed on the S$280 million ($214 million) purchase of its 40 percent stake in SC Capital earlier this month, completing the first tranche of a deal that could see the Singaporean giant attain full ownership by 2030.

SGX-listed CapitaLand Investment is set to triple its funds under management in Japan while growing its business across Asia Pacific with the purchase of the firm founded in 2004 by Thai financier Suchad, who is expected to retain full autonomy over the business until the sale of the remaining 60 percent stake.

Under the partnership, CapitaLand Investment will invest a minimum of S$524 million ($400 million) in SC Capital’s fund strategies to support the growth of the platform and strengthen investor alignment.