SC Capital in $383m first close for fifth Asia opportunistic fund – Exclusive

The Singapore-based real estate investment manager has raised the first capital for its $1bn pan-Asia opportunistic real estate fund.

SC Capital Partners, the Singapore-based real estate investment manager, has raised $383 million in the first close of its fifth pan-Asia opportunistic vehicle, PERE has learned.

According to a source familiar with the capital raising, the close was held this week. Six investors have committed capital to Real Estate Asia Capital Partners V fund so far, including two UK investors, one German insurer and one US endowment fund among others. All are believed to be repeat investors from previous RECAP vehicles.

SC Capital Partners is understood to have officially launched its fifth opportunistic vehicle around July this year with a $1 billion capital raising target. The fund launch came on the back of a $452 million closing of its debut core-plus vehicle in Asia in July this year.

SC Capital’s first close haul for RECAP V is similar in size to previous vehicles in the series, with RECAP IV having attracted $367 million for its first close, ultimately closing on $850 million in December 2014. The capital raised via RECAP IV is currently being invested. PERE understands from the source that mid 20s gross IRR return is being generated at the fund level.

The investment strategy for RECAP V remains the same as the previous vehicle in that the firm will seek value-added investments in target cities across the region. So far no investment has been made from RECAP V.

Some of the biggest vehicles closed in Asia-Pacific in 2017 have been opportunistic in nature. These include PAG’s $1.9 billion closing of its seventh opportunistic vehicle in September; Gaw Capital Partners’ $1.8 billion haul for its fifth higher yielding vehicle (including sidecar commitments); and the mammoth $5 billion first close by Blackstone for its latest Asia opportunistic vehicle.