Greater China-focused real estate investment manager KaiLong has fully deployed its maiden US-dollar denominated closed-end value-add vehicle.
The firm has invested around $270 million in a total of eight deals, which includes co-investment capital alongside the $238 million raised via the KaiLong Greater China Real Estate Fund. Capital raised from the fund has been used to make investments in Hong Kong and China.
The most recent deployment was a HK$400 million ($51 million; €41 million) investment closed last month in an office asset in Hong Kong. The other investments include three acquisitions in Shanghai, one in Beijing, one in Dalian, and two more in Hong Kong.
Ivan Ho, managing director, fund management at KaiLong, told PERE that a bulk of these investments are value-add in nature, while two are development projects. The projected returns from these investments are around 25 percent net IRR and a 2x equity multiple.
The KaiLong Greater China Real Estate Fund was launched in 2013, with a $200 million initial target. The firm raised $238 million in the first close in May 2015 with the capital raised from a total of ten investors, including fund of funds, European and Asian family offices, as PERE reported earlier.
The firm is also understood to have made two complete exits from the fund, in addition to pre-selling a development project in Hong Kong.
Meanwhile, KaiLong is also readying the launch of the second vehicle, for which it is targeting to raise $500 million in equity, with a first close expected to be held within the first quarter of this year.