Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has acquired a dormitory in Singapore in a deal valued at S$127.1 million (€85.52 million; $92.18 million).
Located in eastern Singapore, Homestay Lodge has about 6,000 beds spread over an area of around 200,000 square feet. It comprises of 10 blocks, of which seven are residential and two contain dining and mini mart facilities, and one is an administration block.
Pamfleet declined to comment. PERE has learnt however, that the firm has made the investment via its second value-add property fund called Pamfleet Real Estate Fund (PREF) II. The firm began fundraising for the vehicle around November 2013, with a capital raising target of $350 million and a hard cap of $400 million.
As of January this year, Pamfleet has raised $215 million in capital commitments and is expected to hold a final closing in June. This is the firm’s second investment via the fund. It is understood to have made an investment in a commercial property in Hong Kong, though the firm declined to comment on the specifics.
This is not Pamfleet’s first brush with this niche asset class. It previously owned a portfolio of four dormitories located in specific industrial zones in Singapore as part of a joint venture partnership with a subsidiary of Morgan Stanley Real Estate Investing. Capital from the Morgan Stanley Real Estate Fund VI was invested to acquire a majority share in Avery Strategic Investments, which made investments in the dormitories. The properties were sold off in the year 2010 for about $380 million, according to local media, to a consortium of local and overseas investors.
Pamfleet Group was formed in the year 2000 as a management buy-out of the Hong Kong investment bank Jardine Fleming’s direct property fund management business. The firm raised $209 million in 2012 for its maiden real estate fund, which is now fully invested.