Macau fund raises first $20m

Sniper Capital’s first private real estate opportunity fund has made inroads into its $100m capital raising. The Macau-focussed vehicle is expected to buy undervalued properties for redevelopment into non-gaming leisure assets.

The Macau Sniper Fund, the first private real estate opportunity fund launched by Hong Kong–based Sniper Capital, has attracted its first tranche of equity.

Sniper, led by founders Martin Tacon and Tom Ashworth, aims to generate opportunisitc returns from investing in undervalued residential assets on the former Portuguese colony and redeveloping them into non-gaming leisure facilities.

The firm expects to attract $100 million in equity investments from high net worth individuals, private banks and sovereign wealth fundsn for the fund, which was officially launched today. PERE understands that it has already made inroads into this target raising an initial $20 million.

Initial expectations were for a closing by the end of the year but now this is expected during first quarter, 2011.

The firm, which has pre-identified a pipeline of 55 properties valued at $85 million, has structured the fund as a five-year closed-ended fund with an option of a one year extension and Sniper is targeting IRRs of more than 25 percent from its investments.