By the end of the year, it should be a case of 10 down and two to go for InfraRed Capital Partners’ maiden China-focused private equity real estate fund.
PERE exclusively revealed last month how the London-based firm had sold the EC Mall in Beijing to a joint venture between the National Pension Service of Korea (NPS) and Washington D.C.-based private equity firm The Carlyle Group for RMB2.5 billion
(€314 million; $391.5 million). The deal should produce an IRR in excess of 20 percent and a 2x equity multiple.
The sale of the hotly-contested asset, which also attracted bids from US pension giant the California Public Employees’ Retirement System with Singapore’s ARA Asset Manage-ment and United Arab Emirates’ sovereign wealth fund Abu Dhabi Investment Authority alongside Australia’s Macquarie Bank, means InfraRed is well progressed in terms of wrapping up the 2007 vehicle.
Indeed, after it sells a portfolio of six Tesco-anchored properties to the UK retailer later this month in a pre-determined arrangement, it is understood the firm will have just two smaller assets to exit before it can wind up the $707 million fund. And, having returned investors’ equity via the first 10 exits, PERE understands that the final two exits would represent the fund’s profits.