SC Management to launch $400m RECAP III fund for Asia

The pan-Asia real estate investment management business founded Suchad Chiaranussati, is now more than 75 percent invested in its second opportunity fund, enabling it to begin fundraising on fund three.

SC Management, the pan-Asia real estate investment firm founded by Suchad Chiaranussati in 2005, is to embark on fundraising for its third pan-Asia opportunity fund, Real Estate Capital Asia Partners III (RECAP III).

PERE has learned that SC Management is now invested more than 75 percent of the equity of its second fund, RECAP II, which closed on $190.3 million in December 2009, enabling it to begin marketing a follow-on vehicle.

The firm, which has 14 staff working from offices in Hong Kong and Singapore, is aiming to corral $400 million from investors but has set a hard cap of $500 million in the case of oversubscription. A first closing is scheduled for the end of the second quarter.

The fund is expected to generate typical opportunistic returns of 20 percent IRR and between 1.8x and 2x equity.

SC Management would not comment on fundraising activities when contacted as many of its investors are US institutions, but it is understood the firm is in the process of drafting a private placement memorandum and has hired placement agents Mercury Capital Advisors and Park Hill Real Estate to help it raise the capital.

SC Management currently manages approximately $800 million of real estate across Japan, greater China and Southeast Asia and across most real estate sectors, including hotel and residential. For the incoming fund, one third of the capital is expected to be deployed into Japan, one third into Greater China and the remaining third in Southeast Asia countries.