Singapore-based private equity real estate firm SilkRoad Property Partners has officially announced the final closing of its maiden pan Asia property fund at $445.5 million.
In a statement released today the firm said it had oversubscribed its initial fundraising target for the SilkRoad Asia Value Partners vehicle by around $90 million. The fund was launched in August 2014 with a value-add investing strategy and with an original $350 million target.
In May, PERE had broken news of the firm’s plans to imminently close the fund at north of $400 million. At that time the firm had already corralled $360 million from seven investors.
The entire fund corpus has been raised from insurance companies, endowments, pension funds and other institutional investors from Europe, North America and Asia.
“The success of our fundraising efforts is a vote of confidence by previous and new investors in the SilkRoad team, our track record and our investment strategy, despite challenging capital market conditions,” said Peter Wittendorp, managing partner of SilkRoad Property Partners.
The first closing of $230 million for SilkRoad Asia Value Partners was held in December, 2014 following which a subsequent closing of $278 million was announced in March, 2015. So far, around 15 percent of the fund corpus has been deployed in four investments in Hong Kong and Singapore. The investments are expected to generate IRRs of 16 percent to 18 percent.
SilkRoad Property Partners was launched in 2012 by key executives from AEW Asia and is led by Wittendorp, the former Asia Pacific head at AEW.