Carlyle discontinues Asia RE fundraising

The Washington DC firm is to focus on deploying capital from its managed accounts in the region rather than on raising capital for its third blind-pool regional fund.

Washington, DC based private equity firm Carlyle Group has discontinued its fundraising efforts for Carlyle Asia Real Estate Partners III, its third pan-Asia opportunity fund, PERE understands.It is choosing instead to focus its efforts on its managed accounts in the region.

Carlyle declined to comment on fundraising or strategy when approached. PERE reported in May the firm had launched the vehicle with a target of $750 million. No closings were announced since then, however, and the firm is believed to have now halted its fundraising efforts.

However, Carlyle has remained active in the region’s property market, particularly with managed accounts. The National Pension Service of Korea, for example, is known to have granted Carlyle $500 million early last year to make core-plus and value-added real estate investments in China. The firm is also understood to manage other separate accounts for Asia, but these have not been disclosed.

Some of the firm’s more recent investments include a $400 million joint venture investment with the Townsend Group into Chinese logistics developer Shanghai Yupei Group. That investment was described as a “programmatic” joint venture, which will allow Carlyle and Townsend to build out a portfolio of logistics assets.

Last May, the firm also bought a 49 percent stake in two Chinese shopping malls owned by SZITIC Commercial Property for an undisclosed sum.

Across asset classes, Carlyle has been actively collecting separate account mandates from investors. In the US last year, the Pennsylvania State Employees’ Retirement System’s board approved up to $100 million for Carlyle for a custom investment vehicle for primary and co-investments across the firm’s global platform. The firm also garnered $750 million from the Alaska Permanent Fund Corporation for both fund and direct investments.

Since Carlyle’s Asia real estate platform’s formation in 2001, it has invested more than $2.1 billion of equity in Asian real estate, much of which has been in China.

Additional reporting by Evelyn Lee.