SC Management has held a final closing of $190.3 million for the follow-up to its debut fund, Real Estate Capital Asia Partners.
The firm, founded by former Westbrook Partners executive, Suchad Chiaranussati, launched the Pan-Asia vehicle in early 2008 originally targeting $400 million. However, faced with a “tough” fundraising climate, the firm managed a final closing on less than half that amount.
Real Estate Capital Asia Partners II (RECAP II) will run for eight years with an option to extend the fund for another year. Investors in the fund include US foundations, state and corporate pension funds and fund of funds.
It will target opportunistic investments across the real estate sectors in Japan, Singapore, Thailand, Hong Kong and Korea. The fund has already completed two investments, an off-plan residential property in Singapore and a distressed sale in Hong Kong.
Chiaranussati told PERE the firm was close completing three further assets in deals that are expected to conclude within the next fortnight. He said: “In the past, opportunistic meant an acquiring at least an element of development. Now we are able to buy existing properties at an opportunistic return.”
RECAP II is expected to provide an IRR of approximately 20 percent and a two times equity multiple. RECAP, which is now fully invested, is currently providing a return of about 18 percent and a 1.8 times equity multiple.
Chiarunussati leads SC Management alongside senior partners Freddy Chua and Ian Lien. He launched the business, which now has 14 staff at the fund level, in 2005 after leaving Westbrook Partners, where he spent five years.