CLSA charts core-plus expansion – Exclusive

John Pattar, managing director of the Hong Kong-based private equity real estate firm, told PERE during a recent interview his firm would be looking at the sector in the near future.

CLSA Capital Partners, the Hong Kong-based private equity real estate firm, is evaluating expanding into the core-plus sector, according to John Pattar, managing director and head of the firm's opportunistic fund series.

In this month's Blueprint interview with PERE, Pattar, said: “Core-plus is an area we would definitely look at. The reason is, I think we dismiss a lot of assets from the opportunity space because they don't hit our return requirements. But, the pipeline seems very strong in that sector. Sometime over the next 12 months it is something we will look at, definitely.”

CLSA currently runs value-added and opportunistic investment funds – known as Fudo Capital – across the Asia-Pacific region. The strategy involves re-positioning, redevelopment, re-leasing, and the refurbishment of assets. Investment sizes typically range from between $25 million and $150 million in equity with asset sizes under consideration ranging from $50 million to $300 million.

However, Pattar added that the introduction of a core-plus strategy would not interfere with the firm's investments in the opportunistic space.

“For us the opportunity fund space is very much about finding 20-plus returns and I think core-plus is closer to 10 percent to 11 percent so they don't cross over much,” he said.

CLSA is currently investing Fudo Capital III, for which it held a final close at its hard cap of $1 billion, exceeding the initial fundraising target of $850 million, last June. So far the firm has made investments in logistics in Nagoya, Japan, the office sectors in Tokyo and Shanghai, and retail sector in Hong Kong.

To read the full Blueprint interview with Pattar make sure to check out PERE's March issue or click here