Phoenix Property Investors, the Hong Kong-based private equity real estate firm, has started fundraising for its sixth pan-Asia opportunistic real estate fund.
According to sources familiar with the fundraising, Phoenix Asia Real Estate Investments VI was officially launched end of last year. The firm is targeting to raise $900 million for the closed-ended vehicle.
The fundraising target for Fund VI, if successfully achieved, will make it the biggest vehicle in the firm’s Asia opportunistic fund series. Phoenix Asia Real Estate Investments V closed on its $750 million hard cap in December 2013, surpassing its initial $600 million target, while the 2010-vintage Fund IV had raised $460 million.
Like its predecessor, Fund VI has a remit to invest across Asia. Alongside China, Hong Kong and Japan, the firm has also added Australia to the fund’s investment blueprint, a first for its opportunistic series, according to one source. The move is driven in part by the growing opportunistic investment potential in Australia on the back of tightening lending restrictions introduced by the banking regulator, Australian Prudential Regulation Authority.
Placement agent, Monument Group, which worked on Fund IV and V, is also understood to be assisting with Fund VI’s fundraising efforts.
Phoenix Property Investors joins ten other investment managers that are in the market with Asia-focused opportunistic private real estate funds since the start of 2017, according to PERE data. The biggest of these funds is New York-headquartered asset management giant Blackstone’s second Asia fund. As of October, last year, the firm had raised over $5 billion in the first close of Blackstone Real Estate Partners Asia II.
Meanwhile, Phoenix has also been making exits from Phoenix Asia Real Estate Investments V. The latest divestment was in November when the firm sold Enterprise Square III in Hong Kong for around $171 million, as PERE reported earlier. The deal generated a gross post-tax IRR of 50 percent.