Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has raised $400 million in the final close of its second value-add property fund, exceeding its original fundraising target of $350 million.
PERE understands that such was the demand for Pamfleet Real Estate (PREF) II that the firm had to turn away investors, and wrap up fundraising at the hard cap of $400 million.
Pamfleet declined to comment on fundraising. However, PERE has learnt that the final close was officially held at the end of last week. The California-based placement agent CrossCon Real Assets Capital helped the firm in its capital raising efforts.
The capital is understood to have been raised from close to 18 investors, including pensions, life insurers, fund of funds, and family offices from Asia, Europe and the US. The LP base also includes some repeat investors from the firm’s first fund, Pamfleet Real Estate Fund, which closed on $209 million in 2012. Indeed, as many as 70 percent of the Fund I investors are believed to have committed capital in PREF II.
The first close for PREF II was held exactly a year ago in June, when the firm raised $155 million in equity commitments. Similar to the strategy employed by its predecessor, the fund will focus on acquiring secondary assets and reposition them with a target of improving occupancy levels or the tenant mix.
So far, 50 percent of the fund’s capital has been invested in properties in Hong Kong and Singapore; the most recent investment being the acquisition of a dormitory in Singapore for S$127.1 million (€85.52 million; $92.18 million).
The investments are expected to generate net IRRs of around 15 percent to 17 percent.
Pamfleet is understood to be three exists away from fully divesting the investments of its first fund. In May this year, the firm, along with Partners Group, the Zug-based private markets investment manager, exited a jointly-owned investment in an industrial building in Hong Kong. The 13-storey property in the Kowloon East district was sold to Hong Kong-based conglomerate, New World Development Group for around $200 million in a deal that generated an investment return of 45 percent.