SC Capital Partners, the Singapore-based private equity real estate firm, has officially launched its first core-plus real estate fund in Asia.
SC Core Fund is an open-ended fund with an initial fundraising target of $400 million. The firm is understood to be targeting a first close by November this year, with plans of raising the entire target by end of 2016. Following that, once the three-year investment lock-in period ends or once 95 percent of the fund’s equity has been invested, whichever happens earlier, the fund would be opened to subscribers for additional capital raising.
SC Capital Partners declined to comment. However, PERE has learnt that 80 percent of the capital raised will be invested in primary markets, identified as Japan, Australia, New Zealand, Singapore, Hong Kong and South Korea, while the remaining 20 percent would be deployed in secondary real estate markets in the region. The investments are expected to generate net IRRs of between 8 percent and 10 percent.
The firm is marketing its first low risk/return vehicle to investors in the US, UK and Asia. Some of the existing US and UK-based institutional investors in the firm’s previous funds are also believed to have shown interest in committing equity to SC Core Fund.
Led by entrepreneur Suchad Chiaranussati, SC Capital Partners has successfully raised four opportunistic real estate funds in the region.
In late 2014, the firm hauled $850 million for Real Estate Asia Capital Partners (RECAP) IV, in what was its biggest fundraising exercise to date. The firm is understood to have invested around $250 million so far, the most recent reported investment being the acquisition of a luxury resort in the Maldives for around $33 million.