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SCJ closes fourth RE fund on $525m, plans $200m side fund

Secured Capital Japan (SCJ), the Tokyo-listed real estate fund manager, has held a final close of $525 million for its fourth real estate opportunity fund.

Secured Capital Japan (SCJ), the Tokyo-listed real estate fund manager, has held a final close of $525 million for its fourth real estate opportunity fund, PERE can reveal.

SCJ fell short of its initial fundraising target of $750 million of equity for its SCJREP IV vehicle, raising $525 million instead. At an earlier close last year, it had managed to raise $500 million.

The fund, which is to target Japanese real estate, but also have an allocation for investments in China, has an eight year lifespan and is targeting an internal rate of return of approximately 20 percent.

It has a provision to allocate up to 25 percent of its committed equity to distressed debt opportunities.

Investor sentiment was so strong towards this, that the firm is understood to be fundraising for a separate investment vehicle aimed solely at acquiring distressed debt opportunities. The firm is hoping to raise an additional $200 million for the side vehicle.

Plans for the side vehicle, which is expected to be fully raised by the end of the year, are due to be announced alongside that of the final closing of SCJREP IV.

Secured Capital Japan, led by president and chief executive officer Katsuya Takanashi, was founded in 1997. It had $6.3 billion of assets under management as of 30 June.