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EXCLUSIVE: SilkRoad raises $278 million in second close

The Singapore-based real estate investment management firm has raised $278 million for its debut Asia value-add fund, which has a $350 million fundraising target.  

Singapore-based SilkRoad Property Partners, the real estate investment management firm spun out of AEW’s Asia platform, has brought fundraising for its first fund to $278 million following a second closing.

PERE has further learnt that the firm is in the process of finalizing the first two investments from SilkRoad Asia Value Partners. Around $20 million to $30 million in total is expected to be invested in the acquisition of a retail asset in Hong Kong and a mixed-use property in Singapore.

The pan-Asia fund, with a value-add strategy, was launched with a fundraising target of $350 million in August 2013. By December 2014, it had attracted $230 million in the first close. A hard cap of $500 million is understood to have been set for the fund.

SilkRoad Property Partners declined to comment. PERE, however understands that the firm is on track to achieve the fundraising target in two more closes.

As many as six European institutional investors, including insurance companies and provident funds, have so far committed capital in the fund. For subsequent fundraising rounds, the firm is thought to be approaching investors from both Asia and the US.

The capital raised via the fund is expected to be invested in value-add properties in Hong Kong, Singapore and Tier 1 cities in China, such as Shanghai, Beijing and Shenzhen.

Launched in 2012, SilkRoad Property Partners was set up by key executives from the global real estate fund manager, AEW’s Asia team. It is led by Peter Wittendorp, who previously headed the Boston-based firm’s Asia-Pacific operations, and also has five other former AEW executives. The firm has offices in Hong Kong and Singapore.