Asian private equity real estate funds closed in 2013 have raised a total of $10.25 billion across 23 funds, already more than the $10.1 billion across 38 funds raised by such vehicles for all of 2012, according to PERE’s Research and Analytics division.
Fundraising to date has already made 2013 the most successful year of private equity real estate fundraising for Asia after the onset of the global financial crisis. The capital raised is still a far cry from the $31.7 billion raised in 2008, but the best year since then was 2009, which had $10.2 billion raised, and 2010 had only $6.9 billion raised.
That $10.25 billion figure for 2013 does not include the 34 funds that have held partial or interim closes throughout the year, which altogether have raised $7.4 billion. Several of those funds, including Secured Capital’s $1 billion Real Estate Partners V fund, are expected to hold a final close before the end of the year which would extend the total closed even further.
This year’s figures have been heavily skewed by a number of mega funds that have done better than expected. Alpha Investment Partners, for example, smashed its $1 billion fundraising target for its value-added fund by granting a 6 month extension, and managed to haul $1.65 billion from previous and new investors.
Gaw Capital Partners also held its long-anticipated final close on $1 billion for its Gateway Real Estate IV fund after less than a year on the fundraising trail. And in a record-breaking effort for China, the Temasek-owned Mapletree Investments hauled $1.4 billion for its Mapletree China Opportunity Fund II. Even Singapore-based Global Logistics Properties managed to attract $1.1 billion for its GLP Japan Development Venture.
This flurry of success comes in contrast to the fundraising story of 2012, when only two funds were able to break the $1 billion barrier: Fortress Japan Opportunity Domestic Fund II and CapitaMalls China Development Fund III, according to PERE’s research division. Overall, 21 of the 38 funds raised in 2012 collected only $200 million or less.
This year’s fundraising highs have not been shared by all, however. For example, SEB Asset Management slashed its fundraising target in August by approximately €400 million, in response to the scale of its market opportunities and investor appetite for its core-plus/value-added fund.
LaSalle Investment Management has also had to reduce its fundraising target for LaSalle Asia Opportunity Fund IV from $750 million to $500 million after bringing aboard just $192 million in more than 18 months.