Partners Group, the Zug-based private markets investment firm, announced today capital closings for two real estate vehicles totalling $500 million. The firm, which manages more than €27 billion across its various investment programmes, said it had raised the money for funds called Direct Real Estate 2011 and Asia-Pacific Real Estate 2011 during this quarter.
Central to its global investing strategy, Partners Group said it was focusing on “quality, non-core properties where the firm believes it can capitalize on the value divide in pricing.” It said its investments would be regarded as value-added, but occasionally it would step into the opportunistic realm.
Other tenets of its strategy include investing in assets that offer attractive risk-adjusted returns, particularly involving capital structures where junior debt or preferred equity participation features. The firm said that both industrial and commercial property investments would play a part.
In terms of its Asia strategy, Partners Group said it was focusing on hotel and retail markets where “interregional growth has led to increased tourism and increased arrivals across Asia Pacific’s gateway cities. The firm already has made two direct investments in Hong Kong that fit in with this strategy.
Pamela Alsterlind, partner and co-head of private real estate at Partners Group, said: “We are very pleased with the trust placed in us by our clients and believe that, in particular, quality non-core properties in cities with strong demographic fundamentals offer compelling risk-adjusted returns. Our investment focus continues to center on properties where we believe we can increase value and mitigate risk through active asset management initiatives.”