Forum Partners is aiming to raise $1 billion in equity for its third Asia-focused real estate fund as it seeks to make structured equity and debt investments in “middle market” real estate companies across the continent.
According to a market document viewed by PERE, Forum Partners is seeking commitments of between $25-$75 million for its Forum Asia Realty Income III LP, which it would invest over a three year period.
The document said the fund would primarily target: “middle-market property companies under-serviced by the investment banking communities.”
The fund is targeting a net IRR of 18-20 percent over a holding period of four years.
Forum currently operates in Asia from Hong Kong, Beijing and Seoul. The Asia platform is led by managing director and head, Merrit Maddux.
Forum Partners first Asian fund closed on $41.5 million in November 2004, just more than two years after the firm was formed. The vehicle realised an IRR of 35.2 percent. Its second vehicle was closed on $642.4 million in August 2006. That vehicle, which still has uncommitted equity, has realised an IRR of 81.7 percent as of 30 June 2009.
The firm has already been successful in its fundraising efforts this year. In February, it held a final closing of €443 million for its third European vehicle which follows a similar investment strategy to that of the incoming Asia vehicle.
To read more about Forum Partners, see the November issue of PERE in which Europe editor Robin Marriott interviews Forum co-founder Russell Platt.