New York-based alternative investment firm Angelo, Gordon & Co., L.P. has reached a final closing of its third Asian real estate fund with total capital commitments of approximately US$850 million, exceeding the fund’s US$750 million target, the firm said.
The new AG Asia Realty Fund III will seek to capitalize on value-add turnaround and development opportunities with a strong emphasis on Japan, South Korea, Hong Kong and China.
The fund will purchase sub-performing assets which often require significant re-positioning, lease-up or in some cases development to stabilize.
"We continue to see highly compelling real estate investment opportunities in Japan, Korea and Greater China and believe our deep, longstanding relationships with our local operating partners positions us well to generate attractive returns," said
Wilson Leung, Head of Asia Real Estate at Angelo, Gordon, in a statement.
AG Asia Realty Fund III comes on the heels of successful closings for Angelo, Gordon’s U.S.-focused opportunistic and core plus funds, bringing nearly US$3.5 billion of new capital to its global real estate platform.
Angelo, Gordon has invested around US$10 billion of equity globally in real estate deals since 1993, with US$1.9 billion of equity invested in 58 real estate deals in Asia since 2005.
AG Asia Realty Fund III’s predecessor funds, AG Asia Realty Fund II and AG Asia Realty Fund I, were US$616 million and at US$526 million, respectively.
Angelo, Gordon currently manages approximately US$26 billion globally across credit, real estate, and private equity strategies.