Lucrum targets $200m Singapore fund

Singapore-based firm, Lucrum Capital, is hoping for 20 percent-plus returns from commercial and residential property. Investment volumes in the country were 60 percent higher in the first quarter compared to 2010.

Lucrum Capital, the Singapore-based firm, is seeking $201 million for a real estate opportunity fund.

The firm, which was established in 2009 and has raised two property funds since then, is concentrating on Singapore’s property market. The vehicle will invest in commercial and residential property, it said.

According to marketing material, Lucrum Capital could invest up to a quarter of the equity in developments.
The firm is promising investors the traditional 20 percent target internal rate of return, and a management fee of 1.5 percent per year of total commitments. It says the fund will run for five years, with two one-year extensions.

The first vehicle Lucrum launched was the Prime One Residential Fund in 2009. It followed up with Lucrum One Limited which targeted prime commercial developments within the core office district of Singapore.

Sezing on the country's relatively strong economy, the firm highlighted growth domestic product waa expected to be 4 – 6 percent this year. Home ownership among its 5.1 million population is 87 percent.

Richard Ellis’s first quarter 2011 market report said investment sales in Singapore were 66 percent above the first quarter of 2010. It added residential property cooling measures had been introduced on 14 January, though prices remained “firm” while a development site in the Government Land Sales programme even achieved
record prices. A residential site called Bishan Street 14 was sold to CapitaLand for a record-breaking bid of $869 per square foot.