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EXCLUSIVE: Century Bridge targets $400m for second China fund

The Beijing and Dallas-based private equity real estate firm has started marketing for the follow-up vehicle to its 2012 Century Bridge China Real Estate Fund I.

Century Bridge Capital, the Beijing and Dallas-based private equity real estate firm, has commenced fundraising for its second China development-focused fund, PERE can reveal.

The firm, which was founded in 2008 by Tom Delatour, is understood to have started marketing Century Bridge China Real Estate Fund II, after investing a prerequisite 80 percent of the equity of its maiden fund.

Century Bridge is targeting a capital raising of $400 million for the incoming vehicle, the same amount that it originally targeted for Fund I.

That fund ultimately attracted $170 million from 10 institutional investors at its final closing in 2012. However, launched as the private real estate investment management space was still reeling from the effects of the global financial crisis, that fundraise was still considered relatively successful, particularly as many institutions were shunning traditional commingled funds in favor of direct investment clubs and joint ventures at the time.

This time around, however, capital markets are far more accommodating for commingled funds. Indeed, according to PERE's Research & Analytics division, more capital has been raised for private real estate funds in the first three quarters of 2014 than was raised during the whole of 2011, the year Century Bridge launched fundraising for its debut fund. In 2011, $80.3 billion was raised versus $83.6 billion up to Q3 this year.

Century Bridge's back story is somewhat unique in that it was founded by Delatour and several Texas based partners, the former of whom had not so much as visited China until two years beforehand.

Since its formation, however, it has made investments in developments in Chinese cities including Hangzhou, Wuhan, Wuxi and Zhongshan, Xian and Chongqing offering investors considering committing to the firm's second fund a track record to underwrite.

Aiding the firm in its capital raising effort is Avec Capital and XT Capital Partners.

Neither they, nor Century Bridge would comment.