MGPA tees up €500m Asia fund for German-speaking investors

The Europe and Asia-focussed firm intends to launch a core-plus special fund under German investment law, aimed at making investments in the Asian region.

MGPA is looking to raise €500 million from German-speaking investors to invest in established Asia markets, it revealed today.

The Europe and Asia-based firm is launching a core/core-plus fund that will target markets such as Hong Kong, Singapore, Malaysia, South Korea, Japan and Taiwan, it said.

It is creating a special fund under German law for the purpose, with an unrelated third party company providing administration management services under the regulated KAG umbrella. MGPA is seeking commitments from investors in Germany, as well as Austria and Switzerland, with Germany-based Selinus Capital appointed as placement agent.

The special fund will be able to borrow an amount equivalent to its equity capital, therefore giving it firepower of €1 billion to buy commercial property in a core/core-plus strategy.

“With the planned fund structure we want to offer German institutional investors the opportunity to invest in Asian real estate via the acknowledged vehicle of a German special fund and to make use of MGPA’s Asian expertise at the same time,” said Christian Schulte Eistrup, MGPA’s managing director of Capital Markets Europe.

The company has offices in ten Asian and European countries and a total of over 240 employees, of which more than 150 are based in Asia.