The Redwood Group, the Singapore-based logistics fund manager, is in the market raising capital for its second Japan-focused logistics real estate fund.
PERE can reveal that the firm is targeting to raise a minimum of $500 million for Redwood Japan Logistics Fund (RJLF) II, a value-added private equity real estate fund to be invested in warehouse development projects across target markets in Japan. Marketing for the fund began in May this year and a first closing is expected to be held within the fourth quarter of 2015. The hard cap amount is yet to be decided.
PERE understands that the firm is planning to raise a significant chunk of the fundraising target – at least 50 percent – via the first close. The firm is currently believed to be in negotiations with prospective investors at a term-sheet level and is targeting institutional investors from North America, Europe and Asia for capital raising. No hard commitments have been secured so far.
RJLF II is a sequel fund to Redwood Japan Logistics Fund (RJLF), firm’s maiden Japan-focused logistics vehicle that raised around $275 million in the final close in 2014 and is now fully invested. Unlike its predecessor that had a develop-to-core strategy and a longer maturity period, RJLF II will have a intermediate fund life of approximately five years.
The fund will be partially seeded by Redwood’s existing pipeline of warehouse development projects in Tokyo, Nagoya and Osaka. The cost of developing these warehouses is believed to be at least $1 billion.
Redwood declined to comment on capital raising.