Harvest Capital completes first fund exits

The Hong Kong-based firm, majority owned by Chinese financial conglomerate China Resources, has completed $174 million of sales, including the first two exits from its debut vehicle, China Real Estate Opportunistic Fund.

Harvest Capital Partners has completed a trio of sales in China including two exits from its debut fund, the China Real Estate Opportunistic Fund.

The firm has sold a serviced apartment development in the Wanchai area of Hong Kong and a mixed-use asset in Suzhou, south of Shanghai for $75 million and $52 million respectively on behalf of the fund, which raised approximately $400 million of equity.

Harvest Capital has also sold a mixed-use scheme in the Guiyang Urban Development Project in the Yu’an district of Guiyang for $47 million. This asset was sold on behalf of the firm’s Shariah-compliant fund.

According to George Agethen, the firm’s recently appointed head of capital raising and business, the Suzchou and Guiyang sales resulted in IRRs of approximately 20 percent, while the sale in Hong Kong, resulted in an IRR of more than 60 percent.

He added that all three buyers were Chinese. It is a further sign, in China in particular, that domestic buyers are dominating the investment marketplace.

Agethen said: “The opportunity came up to crystallise the gain from these projects. As a fund manager we continue to review the performance of the fund and take profits when we can.”

Harvest Capital is currently determining the structure for its follow-up fund to the China Real Estate Opportunistic Fund. To read more about how Agethen and the firm are drawing up their plans, see the forthcoming November issue of PERE.